Entrepreneurs in Uzbekistan to receive fine relief for early payment

Entrepreneurs in Uzbekistan may be exempted from paying half of a financial penalty if they settle 50% of the fine within one month. The proposal was presented on April 13 to Shavkat Mirziyoyev during a briefing on further liberalizing the application of financial penalties to businesses, reducing bureaucratic barriers, and strengthening judicial oversight over state bodies and officials.

The presentation noted that a number of issues still persist in the current practice of imposing financial penalties on entrepreneurs. In particular, most fines are currently imposed by authorized bodies, while others are issued by courts, highlighting the need to strengthen judicial oversight.

In this regard, it was proposed to introduce a new unified procedure from October 1 this year to encourage voluntary payment of fines. Under the proposal, if a business entity pays 50% of the fine within one month from the date the decision is delivered, it will be exempt from paying the remaining amount.

It is also planned to allow fines to be paid in equal installments over a six-month period. In this case, if one-sixth of the total fine is paid within one month after the decision is issued, the installment plan will be applied automatically.

To strengthen judicial oversight, it has been proposed to introduce a mechanism requiring that funds collected through fines be refunded within 15 days if a court отменяет the decision of an authorized body or declares it invalid. If this deadline is violated, interest will be начисляется for each calendar day of delay based on the Central Bank’s base rate.

Particular attention is also being paid to the digitalization of financial penalty procedures. It was proposed to introduce an electronic registry of fines imposed on business entities within the “Unified State Control” information system maintained by the Business Ombudsman.

Decisions of authorized bodies must be entered into this system using a digital signature after they are adopted. Decisions not recorded in the system and not certified with an electronic signature will be considered invalid and will not serve as a basis for imposing fines.

In addition, it was noted that a mobile application should be developed to track, monitor, and pay financial penalties online, as well as to integrate the information systems of relevant agencies. It is also planned to introduce the possibility of filing online complaints against fine decisions through the taxpayer’s personal account, with automatic suspension of enforcement once a complaint is submitted.

The presentation also proposed drafting a law “On Legal Measures” aimed at unifying procedures for applying legal sanctions.

The president emphasized that ensuring reliable protection of the rights and legitimate interests of entrepreneurs, encouraging lawful business activity, and guaranteeing fairness and transparency in the application of fines are among the most important tasks.

Relevant authorities have been instructed to further refine the proposals, strengthen judicial oversight, accelerate digitalization, and establish a unified, clear, and fair legal framework in this area.