Effective October 1, Uzbekistan is set to implement a unified incentive system for voluntary paying of financial penalties. Under the proposed rules, if a business entity pays 50% of a fine within one month of notification, the remaining balance will be waived entirely.
These initiatives, designed to liberalize and streamline the penalty process for businesses, were presented to the president Shavkat Mirziyoyev on April 13. The discussion also focused on bolstering judicial oversight to hold government agencies and officials more accountable in their enforcement actions.
The presentation addressed systemic flaws in current practices, where the vast majority of fines are levied directly by executive authorities rather than through the courts.
Among the new steps is an installment plan allowing businesses to settle fines in equal portions over six months. If an initial payment of one-sixth of the total fine is made within the first month, the installment schedule is expected to activate automatically.
To further protect business interests, a new mandate would require the state to refund erroneously collected funds within 15 days if a court annuls or overturns a penalty. Should the government miss this deadline, interest—calculated based on the Central Bank’s base rate—will be added for every day of the delay.
Another focus of the discussion was the digitalization of the penalty enforcement process. A key proposal involves integrating an electronic registry of fines levied against business entities into the "Unified State Control" information system, which is managed by the Business Ombudsman.
Once issued, all rulings by authorized agencies must be entered into this system and verified with an electronic digital signature. Failure to comply with this requirement will render the rulings void, effectively prohibiting the collection of fines based on those documents.
The presentation also highlighted the need for comprehensive tracking and monitoring of financial penalties. This includes the development of online payment options via mobile applications and the seamless integration of information systems across all relevant government departments. Furthermore, a new mechanism for online appeals is envisioned; entrepreneurs will be able to contest financial penalties through their personal accounts, with the enforcement of the ruling automatically suspended the moment a complaint is filed.
Finally, it was proposed to draft a Steps of Legal Recourse bill, aimed at unifying the procedures for applying such regulatory measures across the board.
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