Chamber of Commerce and Tax Committee join forces to curb catering tax fraud

Speaking at an open dialogue on April 21, Pulatov revealed that some public catering businesses are registering individual entrepreneurs – often in the names of owners or employees – to issue receipts. By bypassing legal entities, these businesses significantly reduce their tax liabilities.

Authorities have already identified 419 such establishments in Tashkent alone. Pulatov noted that officials are actively monitoring these practices. “We see and know this. When inspections come, you will regret it. Please operate legally,” he warned.

Pulatov explained that businesses are effectively partitioning their operations to keep a portion of their turnover outside the VAT system, rather than recording all transactions through a single registered company. Under current regulations, while sole proprietors may operate across more than 90 types of activities, public catering, including cafés, canteens, and restaurants, is strictly excluded from this framework.

While first-time offenders will receive warnings, Pulatov emphasized that repeat violations will trigger heavy financial penalties.

Davron Vakhobov, Chairman of the Chamber of Commerce and Industry, stated that the Chamber is ready to intervene directly. “If we receive the list of these enterprises, we will invite them and explain why this practice must stop,” he said, citing instances where businesses are registered in one region but operate in another to evade detection.

Jahongir Abdiev, Deputy Chairman of the Tax Committee, added that underreporting income remains a significant issue. “Some are officially declaring just one employee with a monthly salary of UZS 1.3 million,” Abdiev said, noting that the Tax Committee will share data on these cases with the Chamber to facilitate enforcement.