Which criteria were used to select the 34 types of activities to be removed from the list of self-employed individuals, and why is it allowed for bakers but not for hairdressers? In response to this question from Kun.uz, the Deputy Chairman of the Tax Committee stated that it is necessary to create equal conditions for everyone. According to him, the criteria for reviewing the list was based on whether an individual could engage in this work alone or not.
Starting from January 1, 2026, the types of activities that self-employed individuals can engage in will be reduced from 104 to 72. Activities in 34 categories, such as hairdressing, photo-video services, car repairs, trading in farmers' markets, preparing and selling sweets and salads, guiding and interpreting, real estate agency, copywriting, and tutoring, will be removed from the list.
So, on what basis were these 34 categories selected? Starting next year, why is it allowed for self-employment, for example, for bakers but not for hairdressers?
A Kun.uz reporter raised this question at a press conference with Tax Committee officials.
“We had formed a broad list for self-employed individuals. This was done to fully legalize the activities of entrepreneurs operating in the republic. We achieved this result. That is, more than 4 million citizens have started to engage in activities by registering in the Tax mobile application as self-employed. This is a commendable figure,” said Mubin Mirzayev, the First Deputy Chairman of the Tax Committee.
According to him, the second issue is to create equal conditions for entrepreneurs. The list is being shortened “to ensure that they do not engage in illegal activities.”
“Our goal is not primarily tax revenues. The main priority is to create equal conditions for entrepreneurs of the same category. That is, entrepreneurs need to develop. If development is hindered, we need to correct it. This work is being done to prevent entrepreneurs from going down the wrong path.
Let’s assume there is a retail store, and it is registered as an individual entrepreneur. The owner of the neighboring store is self-employed. One pays taxes, and the other does not. When there are two different conditions for both, it disrupts the competitive environment and does not provide an opportunity to work. We have formed this list so that self-employed individuals can do this work alone, without needing 2-3 people. This list is currently under discussion regarding the informal economy,” Mirzayev stated.
A tax official emphasized that a tutor can be self-employed if they work alone, while it is impossible for one person to sell in a store, highlighting that this should be considered entrepreneurial activity. However, he did not explain why many types of activities similar to tutoring that can be engaged in individually are being removed from the list.
The threshold for becoming a VAT payer will not be increased
Since January 1, 2019, legal entities with an annual turnover exceeding 1 billion soums have been paying value-added tax. Although six years have passed since then, this amount has not been indexed for inflation. According to Mubin Mirzayev, a high amount was set at that time, and it was planned not to change it in the medium term.
“In 2019, when the tax concept was being developed, we set a high threshold. We had options of 100 million, 300 million, 500 million, and 1 billion soums. To avoid burdening many entrepreneurs, we set the threshold at 1 billion soums and planned not to change it for at least 5-6 years. At that time, with the exchange rate, 1 billion soums was 125 thousand dollars. Other countries did not have such a high threshold; they had 30 thousand dollars, 50 thousand dollars, 60 thousand dollars,” said the First Deputy Chairman of the Committee.
Mubin Mirzayev added that there are currently no plans to review this threshold.
