By Diplomacy Journal Lee Kap-soo
The following article was contributed by Тulkin Teshabaev, Rector of Tashkent State University of Economics, Doctor of Economic Sciences, Professor, to the Diplomacy Journal for publication through the Embassy of Uzbekistan in Seoul. –Ed.
Today, it can be stated without exaggeration that representatives of the entire business community across the country had been eagerly anticipating traditional Open Dialogue between the Head of state and entrepreneurs. As noted by the President, this is not merely a forum, but a platform for lively and sincere dialogue that plays a vital role in strengthening mutual trust between the state and the business sector.
This platform not only serves as a venue for raising and discussing pressing issues of concern to entrepreneurs at the highest level, but also as a mechanism for adopting practical, result-oriented measures to address them. As emphasized by the Head of State, nearly one thousand initiatives and proposals submitted by entrepreneurs—from the first such dialogue to the present day—have been incorporated into national legislation and regulatory frameworks. This ongoing commitment to reform has contributed to the continuous improvement of the business environment across the country. It has also fostered dynamic growth in entrepreneurship, with tangible benefits for the economy at large—particularly in generating employment opportunities and enhancing public welfare.
It is important to underscore that thorough preparations were undertaken ahead of the President’s Open Dialogue with entrepreneurs. These efforts included active engagement by business representatives themselves, as well as dedicated involvement from regional administrations, ministries, government agencies, and other relevant institutions.
In preparation for the dialogue, hundreds of meetings were held at the local level with entrepreneurs across various sectors. For instance, during an event organized by the Ministry of Agriculture in the Republic of Karakalpakstan, priority was given to maintaining consistent dialogue with farmers and dehkans, proactively addressing their concerns, enhancing the quality of agri-service provision, and ensuring the efficient use of available resources.
A wide range of issues were reviewed, including land allocation, irrigation systems, subsidies, access to financing, and legal matters related to agricultural operations. Several concerns were addressed on the spot, while others were delegated to specific officials with clear timelines for resolution, ensuring accountability and follow-up.
Representatives of the Ministry of Construction and Housing and Communal Services, the Chamber of Commerce and Industry, the Business Ombudsman, the State Tax Committee, members of the Public Council for the Support of Entrepreneurship under the President of the Republic of Uzbekistan, and other relevant institutions participated in a sectoral meeting with entrepreneurs engaged in construction. The session provided a platform for frank discussion of systemic challenges in the sector and the formulation of practical proposals aimed at resolving them. Entrepreneurs raised a number of pressing concerns, including obstacles faced during the construction process, issues related to land allocation and infrastructure, and suggested measures to simplify financial instruments. Particular attention was given to the implementation of the escrow system, around which multiple perspectives and recommendations were voiced.
In preparation for the President’s Open Dialogue with Entrepreneurs, a separate meeting was held with representatives of small and medium-sized businesses operating in the retail and hospitality sectors. Participants highlighted issues such as tax burden, licensing procedures, access to financial resources, public health regulations, and the need for digitalization in reporting and regulatory oversight. Discussions also focused on the disparity between working conditions of large retail chains and individual entrepreneurs, underlining the need for more flexible and differentiated approaches to taxation and regulation.
Participants unanimously emphasized that this format of open, inclusive engagement allows the business community to communicate their concerns directly to regulators, while enabling prompt and tangible responses to issues that matter most to entrepreneurs.
As President Shavkat Mirziyoyev noted, in preparation for this year’s Open Dialogue, nearly 7,000 representatives from 26 different sectors were engaged in separate consultations. Over 13,000 submissions and proposals were received through dedicated call centers. Considering the broad participation of business representatives—whether in person at the Open Dialogue held in New Tashkent or via live broadcast from central and regional studios—tens of thousands of entrepreneurs were given the opportunity to voice their ideas and proposals for improving the country’s business environment. Most importantly, and without exaggeration, millions of proactive and enterprising citizens were eagerly awaiting answers to their most urgent concerns—and they received them.
During his address to participants of the Open Dialogue with Entrepreneurs, President Shavkat Mirziyoyev emphasized the significant role of individual entrepreneurship in the national economy. He noted that approximately 300,000 individual entrepreneurs are currently operating in Uzbekistan, with an additional 5.5 million citizens engaged in self-employment. To support this growing segment of the economy, a landmark Presidential Resolution was adopted on August 12—just days prior to the Open Dialogue—which introduces a Special Legal Regime that will remain in effect until 31 December 2030.
Under this framework, comprehensive digital platforms will be developed to deliver a full range of services tailored to the needs of individual entrepreneurs and the self-employed. These services will include: Remote registration and suspension of business activity; Automated tax calculation and payment, as well as filing of tax returns based on real-time income data; Real-time fiscalization of transactions; Opening, integration, and management of bank accounts; Execution of payments for goods and services, including peer-to-peer transactions and money transfers.
Starting 1 November, these digital platforms will allow for remote state registration of both individual entrepreneurs and self-employed persons using biometric identification and mobile SMS verification. This seamless and secure method will eliminate the need for in-person visits and enhance accessibility. Moreover, using the same platforms, users will be able to digitally sign contracts, payment orders, electronic invoices, and certificates of completion without the need for an electronic digital signature (EDS). Documents signed in this manner will have equal legal validity to paper-based originals.
The platform ecosystem will also support a complete financial and operational cycle, including: opening and maintaining electronic wallets, processing both cash and cashless transactions, generating payment credentials and QR codes for peer-to-peer payments, accepting contactless payments via “tap to pay” technology, managing financial flows through integrated banking and payment services. Importantly, electronic wallets issued under this regime will carry the same legal standing as traditional bank accounts and may be used for all entrepreneurial activities, including: receiving business income, settling payments with employees, partners, and state authorities, fulfilling tax and other mandatory obligations. These transformative steps reflect Uzbekistan’s commitment to fostering an inclusive digital economy and creating a favorable legal and institutional environment for entrepreneurship.
From January 1, 2026, the procedure for paying personal income tax in fixed amounts for individual entrepreneurs is canceled. Also, the turnover tax rate for individual entrepreneurs and self-employed persons with an annual turnover of up to 1 billion soums is set at 1 percent. Commenting on this clause of the decree, the President noted that an individual entrepreneur with a turnover of up to 100 million soums, instead of a fixed tax of up to 12 million soums per year, will pay no more than 1 million soums. Or if an entrepreneur with a turnover from 100 million to 1 billion soums previously paid 30-40 million soums, now their tax burden will be reduced by three to four times. In general, due to the conditions being created, 1 trillion soums will remain in the account of individual entrepreneurs annually, which will become an additional resource for small businesses, an opportunity for individual entrepreneurs to take their business to the next stage.
When the Head of State asked the entrepreneurs, “Do you support this initiative?”, there was no doubt that the answer would be a resounding yes.
Many entrepreneurs operate businesses in the textile industry — one of the key drivers of economic growth with significant export potential. Over the past five years alone, approximately 400 enterprises with a total investment of 3.5 billion US dollars have been established, and production volume has reached 10 billion US dollars. The well-being of more than 500,000 individuals employed in textile enterprises depends on the favorable conditions created within the sector. In light of this, the country’s leadership is taking comprehensive measures to support entrepreneurs engaged in textile manufacturing.
Recalling the meeting held a week before the open dialogue, the President highlighted a series of measures adopted, including those following discussions with representatives of over 200 textile enterprises who shared the challenges they face in their operations.
A budget of 7 trillion soms has been allocated to support the textile industry. In the near future, a “Reliable Exporter” program will be launched in this sector, alongside the establishment of a pre-export financing system, with an investment of 200 million US dollars.
Entrepreneurs in the sector who plan to expand production by relocating their enterprises from Tashkent and regional centers to districts with abundant labor resources and available land will be granted loans of up to 10 billion soms.
Considering that 90 percent of domestic textiles are produced from cotton, and that the prices of yarn and fabric manufactured in the country are on average 10 to 15 percent higher than those of competitors from other countries that widely use synthetic fibers and blended fabrics, mixed fabrics and textiles will be exempt from customs duties until January 1, 2028.
These and other measures will undoubtedly address many of the challenges faced by entrepreneurs operating in the textile industry.
Following the outcomes of the President’s open dialogue with entrepreneurs, concrete and targeted measures will be undertaken to support business representatives across various other sectors and fields.
Particular attention from entrepreneurs was drawn to the segment of the President’s speech concerning tax administration. Tax-related issues have always been a matter of concern for business representatives, who understandably advocated for a reduction in the tax burden.
As emphasized by the President, significant changes have been made in recent years, a fact confirmed by surveys indicating that 79 percent of the population and entrepreneurs have noted substantial improvements in the business environment. At the same time, reasonable concerns regarding tax administration continue to be raised and require resolution.
Such measures have indeed been adopted. According to the President, under the current regulations, enterprises with an annual turnover exceeding 10 billion soms are required to make advance payments on profit tax, which creates challenges for working capital. Going forward, this requirement will only apply to companies with turnover exceeding 20 billion soms. As a result, approximately 14,000 entrepreneurs will be able to retain around 1 trillion soms in working capital within their businesses.
Measures such as the one-year exemption from profit tax for enterprises transitioning from the unified tax system to VAT are sure to receive strong approval from entrepreneurs. Additionally, a form of “amnesty” will attract significant attention: entrepreneurs found to have errors or discrepancies during tax audits will not face penalties, provided they voluntarily correct all violations by November 1.
A significant relief for entrepreneurs will be the exemption starting next year from the obligation to independently prepare reports on land, property, social, and personal income taxes. These reports will be prepared free of charge by the tax authorities, while entrepreneurs will have five days to make any necessary corrections.
It is challenging to cover all aspects of the recent open dialogue between the Head of State and entrepreneurs in a single article. Each point discussed is significant and will undoubtedly receive a positive response from the business community, giving a fresh impetus to their activities.
In conclusion, it is worth highlighting the assessment given by the Head of State to entrepreneurs, describing them as the driving force that shapes the development and future of the New Uzbekistan, creates wealth and prosperity for our nation, and ensures the well-being of the people, as well as the prosperity and stability of families.
This high appraisal is further supported by statistical data. According to preliminary information from the National Statistics Committee, in the period from January to June 2025, the share of small business entities in the GDP amounted to 49.6 percent. In the first half of the year, the share of small business entities accounted for 33.2 percent of industrial production, 77.6 percent of construction work, 97.2 percent of the production of goods and services in agriculture, forestry, and fisheries, 54.8 percent in the service sector, and 81.8 percent in retail trade turnover. During the first six months of the year, the export volume of products, goods, works, and services by small business entities reached 5 billion US dollars, representing 29.7 percent of the total export volume. According to preliminary data for the same period, income generated from small businesses accounted for 57 percent of the total aggregate income of the population.
Undoubtedly, the attention of the country's leadership to the development of entrepreneurship, a vivid testament to which is the open dialogue of the President with businessmen, the decisions made based on its results, will contribute to the further growth of these figures.
