When China sneezes, Mongolia catches a cold
6 hours ago
Uzbekistan is fast evolving as a gig economy, as over one-quarter of the working-age population is now classified as self-employed, according to the State Taxation Committee.
The number of self-employed workers topped 5.5mn as of July 1, the Tax Committee reported on its official Telegram channel. That represents a surge over 2024’s reported total of 3.5mn.
The three sectors reporting the strongest freelancer growth rates were household services, agricultural services and manufacturing services.
The surge may be linked to government efforts to expand its tax base by shedding light on Uzbekistan’s vast shadow economy. Those working in the informal economy, such as ride-share and food delivery drivers, cleaning services providers, tutors, vendors and small-scale traders, have tended to operate on a cash basis, enabling them to avoid or minimise income taxes.
The tax committee announced on July 2 that almost 800,000 ride-share and food-delivery workers had been officially registered, adding that 208 ride-share or delivery companies operating in Uzbekistan had been “fully integrated with the information systems of tax authorities.” The process so far has yielded roughly $7mn in additional revenue for government coffers in 2025.
The taxation committee also announced that gig workers will start having taxes withheld if their income exceeds about $7,800 annually. Average annual income in Uzbekistan at the outset of 2025 was estimated at just over $5,000.
The State Taxation Committee’s numbers provide a boost for an initiative announced by Uzbek President Shavkat Mirziyoyev in early 2025 to create over 5mn jobs by the end of the year. Under the government plan, representatives of neighbourhood committees, or mahallas, assume primary responsibility for developing “measures to form an entrepreneurial spirit, reduce dependency and support the labour activity of low-income families.”
This article first appeared on Eurasianet here.
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