Uzbekistan plans to halve fines for businesses

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan plans to cut all types of fines for entrepreneurs by an average of half, while from 2027 disputes between businesses and the state will be subject to a principle presuming entrepreneurs are in the right, President Shavkat Mirziyoyev said on 18 August during an open dialogue with entrepreneurs in Khorezm region.

According to the president, 51 agencies currently have the authority to impose financial fines. At the same time, some state bodies retain part of the proceeds from fines within their own organizations. Mirziyoyev said such a system could create improper incentives in which inspections are used to collect money.

“A fine should serve not to raise funds, but to ensure order and prevent violations,” the president said.

From 2027, the principle of “presumption of the entrepreneur's rightness” will apply to disputes between businesses and state bodies. A business will be considered not at fault until its guilt is established by a court. Until then, fines and other enforcement measures will not be applied.

The government also plans to introduce a “warning for the first mistake” principle. If an entrepreneur violates established requirements for the first time and the violation does not result in harm to people's life or health or to property, the entrepreneur will be given 10 days to correct the violation.

The changes will also affect procedures for resolving disputes between businesses and state bodies. Regulatory agencies will be required to pay state duties at each stage of court proceedings after a case has been considered by a court of first instance.

In addition, the Expert Council under the Chamber of Commerce and Industry is planned to be given authority to consider disputes in the areas of customs regulation, construction, sanitation, quarantine and veterinary services.