Why is it important
The initiative aims to reduce the shadow economy in construction — which is estimated at 41% or approximately 97 trillion soums. This helps to combat illegal schemes, increase tax revenues, and introduce transparency in the real estate market.
What happened
- Cashback has been introduced for individuals — 4-5%, up to 6% according to some estimates, when presenting an invoice and paying VAT.
- This should motivate buyers to formalise transactions and steer clear of “grey” schemes.
- The draft Presidential decree on fighting the shadow economy is currently undergoing interdepartmental coordination.
The size of the shadow economy in construction:
- 41% (97 trillion soums) of the share of the shadow economy.
- 1.2 trillion soums — unpaid taxes.
- 203 billion soums — identified embezzlement.
- More than 50% of employees work informally (322 thousand compared to 294 thousand officially employed).
Context
The concept of cashback is not new — it has previously been discussed, including in the President’s “roadmap”. Success relies on the scheme’s effectiveness and the market’s willingness to adopt official settlements. This forms part of wider measures — digitalisation, shift to cashless payments, and efforts to combat the shadow economy in other sectors.
