The largest share of the informal economy in Uzbekistan is concentrated in sectors such as the secondary real estate market, tobacco smuggling, wholesale trade, and others, the experts says, Uznews.uz reports.
Despite providing opportunities, incentives, and subsidies to entrepreneurs for legal business operations, the share of the shadow economy in Uzbekistan remains high, at around 40%, which is equivalent to approximately $32 billion. These figures were disclosed during a recent press club meeting of UzLiDeP, the leading political party in Uzbekistan.
During the meeting, members of the Legislative Chamber of the Oliy Majlis (parliament), representatives of ministries and agencies, media, scholars, and businesspeople discussed reducing the shadow economy and supporting entrepreneurs who operate legally.
Participants also thoroughly discussed the results of the open dialogue between the country's president and entrepreneurs that took place on August 18, 2023, and the measures taken as a result of that meeting.
The most vulnerable sectors susceptible to the growth of the shadow economy include the secondary real estate and transportation markets, wholesale and retail trade, services, tobacco smuggling, illegal goods trafficking, agriculture, and others, as highlighted during the meeting.
Ulugbek Kasimov, a representative of Uzbekistan's State Customs Committee, discussed the efforts to combat smuggling and violations of customs legislation in the illegal import and sale of tobacco products. He reminded that the "Law on the Restriction of the Spread and Consumption of Alcoholic and Tobacco Products" came into effect in Uzbekistan on August 26. This law includes measures to counter the illegal import and sale of such products in Uzbekistan.
Kasimov also noted an increase in attempts to smuggle contraband tobacco into Uzbekistan during the current year. According to him, this is due to lower import excise rates in neighboring countries like Tajikistan or Kyrgyzstan compared to Uzbekistan.
"At present, the main task of customs authorities is to prevent the introduction of large quantities of goods into illegal circulation by identifying the channels through which tobacco products enter the market and where they accumulate," said the representative of Uzbekistan's State Customs Committee.
In 2023, customs authorities thwarted 214 cases of illegal tobacco product imports into Uzbekistan, totaling 4.7 million boxes of tobacco products with a value of 75.2 billion Uzbek som.
Meeting participants specifically emphasized that illegal cigarette trade contributes to corruption, which in turn has a negative impact on Uzbekistan's position in global rankings and worsens the investment climate in the country.
As a result of the meeting, an agreement was reached for ministries and agencies to collaborate with UzLiDeP deputies and party activists to organize consolidated efforts to significantly reduce the "shadow economy" and ensure effective public oversight.
The population of Uzbekistan has reached 36 million people, and the country's GDP has exceeded $80 billion. Inflation at the end of 2022 was reported at 12.25%.
CentralasianLIGHT.org
October 4, 2023