Uzbekistan plans to reduce cash usage and shift towards non-cash payments the wholesale transactions for certain goods, as stated in a presentation to the president of Uzbekistan on February 13, reviewed by Gazeta.uz.
To improve tax administration, a presidential decree outlining additional measures to expand utilization of electronic payment systems is anticipated to be developed.
Starting April 1, the proposal suggests introducing mandatory connection to electronic payment systems for the following entities:
- Organizations funded from the state budget providing services to the population;
- Legal entities selling oil and gas products;
- Legal entities providing property for rent;
- Construction organizations selling housing to individuals. Payments for apartments in non-cash form are planned to be formalized with an electronic invoice.
Additionally, new retail and wholesale trade regulations in Uzbekistan are expected to be approved.
Starting April 1, a procedure for registering the arrival of goods purchased in cash in the E-Ombor (E-Aktiv) system of the Tax Committee is set to be introduced.
A limit of 100 million soums, or 300 basic calculation values (BCVs), for cash settlements is proposed to be established. It is approximately equivalent to $8,006, based on the CBU rate on February 19.
Wholesale trade in construction timber, metal (sheet iron, rebar, aluminum profiles), car tires, and sugar is intended to transition to a cashless format.
In December 2023, Deputy Prime Minister Jamshid Kuchkarov reported on the preparation of a draft presidential decree to reduce cash circulation to combat the shadow economy, emphasizing that certain payments would be made only through bank cards.
President Shavkat Mirziyoyev earlier shared the estimated damage to the state budget of Uzbekistan from the shadow economy amounts to 30 trillion soums (approximately $2,4 billion) and the damage to GDP to 135 trillion soums (approximately $10,8 billion). He highlighted that almost 11,000 developers (41%) reported only one employee in their reports.
Starting February 1, Uzbekistan will launch entrepreneurs sustainability rating, aiming to encourage properly operating businesses and motivate them to move out of the “shadow.”
