Uzbek authorities introduce mandatory non-cash payments for number of payments starting in April

TASHKENT. March 31 (Interfax) - A number of payments in Uzbekistan will be made exclusively in non-cash form from April 1 as part of the implementation of a presidential decree.

Mandatory non-cash payment is being introduced, in particular, for the payment of public services and utility bills, the purchase of alcohol and tobacco, real estate and car transactions, and for the purchase of goods and services costing over 25 million som ($2,000 at the current exchange rate).

The key goal of the reform is to reduce the size of the shadow economy, the deputy chairman of the Uzbek Tax Committee, Jakhongir Abdiyev, said at a press conference.

"The main goal of the decree is to reduce the scale of the unobserved economy in the country. The task is to reduce it 1.3 times [23.1%]. Another key indicator is to increase the share of non-cash payments in the sphere of trade and services, where it is most widespread," Abdiyev said.

It is planned that the share of non-cash payments made by the population in this sphere will increase to at least 75%, he said.

Around 28,000 product items fall under the new requirements, which constitutes approximately 7% of the total number of goods in circulation. From April 1, cash payment for them will be technically restricted at cash registers.

A total of 58 service centers servicing cash register equipment have already received the relevant technical assignments and updated their software, Abdiyev said.

In addition, the government's economic division together with banks has provided for the possibility of stores and filling stations entering into agency agreements with banks to provide services for replenishing bank cards directly on site.

The official exchange rate on March 31 is 12,210 som/$1.