Fines for entrepreneurs to be reduced: proposals to be prepared within a week

Uzbekistan is planning to reduce fines, mandatory payments, fees, and bureaucratic requirements imposed on businesses. President Shavkat Mirziyoyev emphasized that officials should not only punish entrepreneurs but also create conditions for them to work and develop.

According to official data, the total amount of financial penalties imposed on entrepreneurs between 2024 and 2026 reached nearly 3 trillion soums. Ministries and agencies have now been tasked with reviewing existing procedures within one week.

51 agencies have the authority to impose fines

Currently, 51 ministries and agencies in the country can impose financial sanctions across 322 areas.

During the meeting, it was noted that such broad powers can, in practice, exert excessive pressure on entrepreneurial activities. For this reason, the need to review the procedures for setting and applying fines was highlighted.

According to the provided information, the amount of fines imposed on business entities over the last three years has approached 3 trillion soums.

"One should not be limited to just punishment"

The President emphasized the need to change the approach and working style of officials who apply punitive sanctions.

Regulatory organizations should not be limited to immediately punishing an entrepreneur for a mistake; instead, they should help rectify shortcomings, conduct explanatory work, and support the business.

This approach envisions basing the relationship between state agencies and entrepreneurs on cooperation rather than control and punishment.

5 million soums spent on exporting one truckload of cherries

Mandatory fees paid by producers and exporters were also discussed at the meeting.

As an example, it was noted that when exporting one truckload of cherries abroad, an entrepreneur pays additional funds for the following services:

• customs duties;

• fumigation services;

• issuance of certificates;

• customs broker services.

The total amount of these expenses can reach up to 5 million soums. This increases the cost of the product and affects the competitiveness of Uzbek exporters in foreign markets.

Payments for exporters to be reviewed

It was noted that at a time when competition in foreign markets is intensifying, maintaining excessive payments and fees acts as an additional barrier for local producers.

Therefore, the issue of reducing costs in the export process, canceling redundant services, and simplifying the document processing procedure will be considered.

Such changes could reduce costs for entrepreneurs and allow products to be brought to foreign markets faster and more cheaply.

Ministers given a one-week deadline

Ministers and industry heads must submit concrete proposals to the Presidential Administration within one week.

The proposals will cover the following areas:

• reducing bureaucratic procedures;

• canceling unjustified or excessive fines;

• reducing mandatory payments and fees;

• simplifying export processes;

• creating favorable conditions for doing business.

Once final decisions are made, it is expected that financial pressure on entrepreneurs will decrease and the process of working with state agencies will be simplified.