Uzbekistan is set to delay the implementation of the "aggregation" requirement within its digital tracking system for bottled water and soft drinks. The move follows pushback from industry players who cited numerous technical hurdles and operational risks. This proposal was supported by the president Shavkat Mirziyoyev during the government meeting on May 5, the Business Ombudsman Abdumannon Buriev told the Uzbekistan 24 news channel.
Mandatory aggregation—a mechanism for tracking large batches of goods within the digital marking system—went into effect on April 1 for the beverage sector. Buriev noted that these new requirements proved particularly challenging for water producers.
“Our analysis showed that out of the ten major companies that control roughly 90% of the market, half are not yet ready for implementation. Given this, the President supported a further extension to ensure the transition isn't disruptive for businesses,” the Business Ombudsman stated.
Aziz Umurzakov, a department director at the Tax Committee, confirmed that two key issues regarding digital marking aggregation were addressed during the meeting.
He also mentioned that business owners had raised concerns over the disproportionate nature of fines for marking violations.
“The president has initiated a reduction in these penalties. Sanctions for manufacturers, wholesalers, and importers will be lowered, while fines for food service and retail businesses will be changed from a percentage of revenue to a fixed, predetermined amount,” Umurzakov added.
Players in the bottled water and beverage industry argued that the new requirements had already disrupted operations for retailers and distributors due to logistical shifts, increased complexity, and rising costs. A major point of contention was the severity of fines for labeling violations—reaching up to 20% of quarterly revenue—even in cases where errors were purely accidental.
In late March, an open letter from the UzBev Association of Beverage and Juice Producers was published which addressed to the government. The letter warned of market risks, argued that the proposed model was unrealistic, and highlighted the lack of industry readiness and technical refinement. In response, Asl Belgisi (CRPT Turon), the system operator, dismissed these concerns as unfounded, claiming the measures aligned with global trends.
The issue was subsequently raised during the meeting between Deputy Prime Minister Jamshid Khodjaev and business leaders. Khodjaev instructed the Tax Committee to investigate the situation, emphasizing that business interests must remain a priority. While the Tax Committee initially stated that fines would not yet be enforced, business owners pointed out the lack of official documentation to back this claim and remained wary of the lingering risks.
The Business Ombudsman’s office acknowledged that tying penalties to a company’s total turnover would effectively mean "guaranteed bankruptcy" resulting from a single employee’s mistake.
According to Abdumannon Buriev, the president ordered a systemic review two weeks ago into the issues weighing on entrepreneur morale and the business climate. Following this review, the Business Ombudsman presented 15 systemic concerns.
The discussion specifically addressed the issue of outdoor advertising and signage, a topic that has recently sparked intense debate on social media. The Business Ombudsman proposed a legislative overhaul to simplify regulations in line with the needs of the business community.
“The core idea was to stop classifying company names or descriptions of business activities as advertising. We also discussed implementing the design code through a phased transition period, emphasizing that this is a complex process that takes years in international practice. These proposals were fully supported,” Buriev stated.
The issue of penalties against entrepreneurs was also raised. “Despite existing incentives and preferences, fines are still being issued. Consequently, an order was given to swiftly amend the Tax Code to establish a moratorium and cease the application of penalties against business entities,” he noted.
Furthermore, the meeting reviewed challenges related to fiscal receipts, cashless transactions, and import procedures.
Labor relations were also a key focus. According to Buriev, business owners have highlighted significant hurdles and excessive red tape regarding the hiring and firing of employees.
“In response, the president invoked the principles of a 'social state' and the need for a balanced approach, instructing that this matter be further refined,” the Business Ombudsman said.
He concluded by noting that these anticipated decisions should foster a more positive entrepreneurial climate and that a systemic dialogue with the business community will remain ongoing.
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