The “hidden economy” continues: 232,000 enterprises have 1 employee – Mirziyoyev

The number of workers in 232,000 enterprises operating in the private sector in Uzbekistan is only 1 person.  This was stated at the meeting of the video selector chaired by President Shavkat Mirziyoyev on measures to develop entrepreneurship and industry and ensure employment of the population.

“This means that they are still working in the conditions of the “hidden economy” and are paid monthly in an “envelope”, the head of state said.

This situation was noted to be very high in 47 districts.  For example, in Nukus, Zarbdor, Mirishkor, Muzrabot, Kattakurgan districts – 80%, in Jondor, Koson, Urgut, Pastdargom, Uchkurgan – 75%, in Gulistan, Namangan, Koshkopir districts.  – 70% of enterprises have 1 job.

The social tax rate has been reduced from 12% to 1% for activities such as retail trade, passenger and cargo transportation, agricultural services, hotels, kitchens, IT, car repair.

More than half of the enterprises in these 47 districts are engaged in these activities.

Despite the created opportunities, it was shown that the indicators of ensuring the employment of the population in some regions are not good.  During 2022, the number of permanent jobs decreased in Kitab, Koson, Mirzaabad, Narpay, Nishan, and Furqat districts.

Enterprises in these districts are unable to pay fair taxes and cooperate with the state.

Also, when hiring people under the age of 25, entrepreneurs were exempted from social tax for 6 months.

The governors of the respective regions were instructed to make a proposal on taking measures against the governors of this district within three days.

“These benefits are aimed at encouraging the development of entrepreneurship in the districts!  But what is the mayor, first deputy and tax chief of these districts busy with?  “Why is it that 70-80 percent of enterprises have never been interested in the fact that only one employee works?” asked the head of state.

The governors of the provinces, together with the responsible agencies, were instructed to conduct a survey in these 47 districts within a month and develop separate approaches for each of them.