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Business Ombudsman proposes replacing fines for labeling

Business Ombudsman requested to replace fines for labeling

Dialogues on supporting entrepreneurial activity and creating relief for business representatives continue in Uzbekistan. At the latest meeting of the "Business Club" project organized by O‘zLiDeP, the issue of mandatory labeling, which is troubling entrepreneurs, was hotly debated.Zamin.uz introduces the details of this important initiative and the expected changes.

Disproportionate punishment: Why is the 2 percent fine burdensome?

Entrepreneurs' objections

During the meeting, entrepreneurs, especially those producing drinking water, complained about the complexities of the mandatory labeling process. The excessive severity of penalties applied for technical errors was highlighted as the main problem.

Business Ombudsman representative Abdumannop Buriyev noted that a fine of 2 percent of a company's total turnover for violating labeling rules could lead small businesses to bankruptcy.

New proposal: A fair sanctions system

To rectify this situation, the Business Ombudsman put forward the following proposals:

  • Stricter fines: Abandoning penalties based on a percentage of revenue and introducing a fixed, specific monetary amount.

  • Principle of proportionality: Ensuring that the penalty is commensurate with the severity of the committed offense.

  • Removing barriers: Creating opportunities for small producers by simplifying complex labeling procedures.

Preserving and developing business

Experts believe that revising the fiscal burden will prevent the suspension of business operations due to technical glitches or misunderstandings. This, in turn, will serve to improve the investment climate in the country.

Dear entrepreneurs, how do you think fines in the labeling system should be set to be fair? Leave your thoughts and suggestions in the comments!

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