Tashkent, Uzbekistan (UzDaily.com) – According to the Agency for Strategic Reforms, retail sales in Uzbekistan amounted to US$24.5 billion in 2022, in Russia – US$631 billion, in Kazakhstan – US$36.4 billion, in Azerbaijan – US$31 billion, and in Belarus – US$26 billion.

In 2022, average retail sales per capita in Uzbekistan amounted to US$687, which is one of the lowest among CIS countries. By comparison, this figure was US$4300 in Russia, US$1870 in Kazakhstan, US$3000 in Azerbaijan, and US$2815 in Belarus.

In 2023, bank card transactions totaled 789 trillion soums, which is 1.4 times more compared to 2022.

Payments through bank terminals in trade and services grew by 37%, reaching 132 trillion soums.

Despite positive trends, the share of cash payments in trade and services remains at 60% of the total volume, significantly higher compared to other CIS countries.

For the period 2024-2026, phased measures are proposed to reduce the share of the shadow economy, decreasing cash payments from the current 60% to 40% and expanding the use of non-cash payments.

Experience from CIS countries such as Russia, Azerbaijan, Kazakhstan, Kyrgyzstan, and Moldova has been analyzed.

For example, in Russia, the maximum amount for cash settlements between legal entities and individual entrepreneurs is 100,000 rubles or the equivalent in foreign currency.

In Kazakhstan, payments between legal entities are exclusively made through non-cash means based on a contract exceeding the monthly calculation index (MCI) by 1000 times. This strict standard is stipulated by the budget legislation of the Republic of Kazakhstan and applies at the time of payment.

In Kyrgyzstan, the total amount transferred by a client to one or several counterparties on the same basis within a short period (14 working days) is considered equal (if the funds are accounted based on one payment document), if these actions are not reasonable, the client amount 199

When selling goods in Belarus (performing work, providing services), an organization or individual entrepreneur may accept cash payments from individuals within a single transaction, not exceeding the base amount by more than 500 times.

For cash settlements between economic entities in Belarus, it is crucial to observe a restriction not exceeding 100 times of the base indicator per day. This rule applies to both transferring and receiving funds, regardless of the number of companies and individual entrepreneurs involved in these operations.

Starting from 1 January, in Moldova, cash settlements between enterprises are permitted only within the limit of 100,000 lei per month. Additionally, the volume of one transaction between economic entities must not exceed 10,000 lei. Sanctions may apply to enterprises, institutions, and organizations, regardless of their ownership form and legal status, if they conduct payments for their financial obligations in cash exceeding 100,000 lei per month or via a payment terminal.

Azerbaijan has enacted the "Law on Non-Cash Payments," setting limitations on cash settlements. According to this law, for trading and catering enterprises registered as VAT payers with an annual turnover exceeding 30,000 manats, the limit for cash settlements is set at 200,000 manats. For other taxpayers, this limit is 15,000 manats per month.

Financial penalties for the first violation within a year amount to 10% of the transaction volume, 20% for the second violation, and 40% for subsequent violations.

Furthermore, entrepreneurs are restricted in accessing cash funds from bank accounts. When withdrawing cash from corporate and private entrepreneur bank accounts, banks or postal operators levy a simplified tax of 1% of the withdrawal amount.

These restrictions apply exclusively to legal entities and individuals engaged in entrepreneurial activities.

With the expanded use of electronic payment systems in the Republic of Uzbekistan, a reduction in cash payments from the current 60% to 40% is expected by 2024-2026. Specifically:

- For the convenience of citizens conducting non-cash transactions, all budgetary organizations providing paid services to the population are required to connect to online payment systems.
  
- Payments for real estate objects sold by construction companies to individuals must be made in non-cash form with the issuance of an electronic invoice.

- Improvement of the cashback system (returning one percent of the purchase amount to individuals), including a mechanism for refunding the amount from the paid VAT.

As a result of implementing these measures, opportunities will be expanded for economic entities operating in the field of electronic payment systems and e-commerce, while also ensuring consumer rights protection.