Uzbekistan imposes three-year moratorium on small business inspections

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Uzbekistan has imposed a three-year moratorium on inspections of small businesses, with exceptions for criminal cases, public health, labor law, citizen appeals, VAT refunds, and enterprise liquidation. The moratorium was introduced by presidential decree following the VI open dialogue with entrepreneurs. The Business Ombudsman will conduct an 'Effective Control' review of inspection agencies during the moratorium.
Key Facts
- The moratorium applies to small business entities, which constitute 99% of all business entities in Uzbekistan.
- Inspections outside the listed exceptions will be considered illegal, and officials responsible for illegal inspections will be held accountable.
- The Business Ombudsman will conduct an 'Effective Control' review of inspection agencies' activities over the past three years.
- The moratorium was introduced by presidential decree following the VI open dialogue between the President and entrepreneurs.
Moratorium Scope
The three-year moratorium covers all inspections of small business entities, with specific exceptions. Exceptions include inspections within criminal cases, matters of public health and labor law compliance, citizen appeals, illegal VAT refunds, and enterprise liquidation. During the moratorium, any inspection outside these exceptions will be deemed illegal. Officials who conduct illegal inspections will face accountability measures.
Business Ombudsman Review
The Business Ombudsman will carry out an 'Effective Control' initiative during the moratorium period. The initiative will examine the inspection activities of controlling agencies over the past three years. Specialists will review inspection materials and assess compliance with legislation. If violations are found, measures will be taken against the controlling agencies and to restore entrepreneurs' rights.
Rationale for Moratorium
Botir Usmonaliev, head of a department in the Business Ombudsman's office, noted that small businesses make up 99% of all business entities. He stated that inspections create additional pressure and burden on entrepreneurs. Even established companies can make mistakes at certain stages of their operations. The moratorium is expected to allow small businesses to operate without fear of inspections and focus resources on development.