Uzbekistan ranks first in terms of shadow economy in Central Asia
BAKU, Azerbaijan, July 1
Uzbekistan ranked first in terms of the shadow economy in Central Asia, Trend reports referring to the Uzbek Ministry of Economic Development and Poverty Reduction.
“Proceeding from analysis and research, the indicators of the shadow economy in the countries are 8 percent in the US, 36.5 percent in Brazil, 21.7 percent in Spain, 19.5 percent in Italy, 18.5 percent in Portugal, 18.4 percent in Korea and 14.5 percent in China, 11 percent in Canada, 10.2 percent in Germany, 9.6 percent in the UK, 9 percent in Austria, 8.6 percent in Singapore and 8.1 percent in Japan,” the message said.
As for the Central Asian countries (calculations based on the MIMIC model), the indicators were 52.11 percent in Uzbekistan, 40.76 percent in Tajikistan, 36.65 percent in Kazakhstan, and 30.53 percent in Kyrgyzstan as of 2019.
The shadow economy has a negative impact on society and the state, namely, violation of the competitive environment and lack of transparency; decrease in the quality and quantity of products; reduction of tax revenues to the state budget; an increase in the tax burden to support social and economic institutions; slowdown in economic growth.
Deputy Minister of Finance of Uzbekistan Dilshod Sultanov shared his plans in late March 2021 to make electronic document flow one of the main tools in the fight against the shadow economy.