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Levying Taxes on the Shadow Economy
Corresponding Author(s) : Berdiyeva Ug'iloy
American Journal of Economics and Business Management,
Vol. 8 No. 7 (2025): July
Abstract
The shadow economy (also known as the informal or underground economy) is a pressing issue in economic policy for many countries today, including Uzbekistan. This article provides a comprehensive analysis of identifying, assessing, and taxing the shadow economy. It explores the nature of the shadow economy, the reasons for its formation, its economic and social consequences, and its impact on the formal economy. The article also sheds light on how these processes can be regulated through the tax system. In particular, the article examines international experiences in combating the shadow economy, including the leading approaches of countries such as the European Union, the United States, the Russian Federation, and South Korea, and develops proposals and recommendations tailored to the conditions of Uzbekistan. The study analyzes the size of the shadow economy and the measures being taken against it, based on the Tax Code of the Republic of Uzbekistan, data from the State Tax Committee, statistics from the World Bank, the International Monetary Fund, and other international organizations. The article also proposes mechanisms such as the use of modern digital technologies to identify shadow economic activity, increasing the efficiency of tax administration, encouraging cashless payments, and optimizing tax incentives. The author argues that reducing the shadow economy can increase state budget revenues, expand the tax base, and ensure macroeconomic stability. This article serves as a useful resource for economists, tax policy specialists, government officials, and researchers working in the field of digitalization of the economy. The research results provide an important basis for developing strategic decisions aimed at reducing the share of the shadow economy in Uzbekistan and increasing the effectiveness of its taxation.
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- [1] M. T. Zhurayev, problems of the hidden economy in the taxation system, Tashkent: Economics-Finance, 2020.
- [2] Sh. X. Tashpolatov, ways to improve tax policy in Uzbekistan, Tashkent: Economics, 2019.
- [3] A. M. Egamberdiyev,” fiscal measures in the reduction of the hidden economy, " Finance magazine, no. 1, pp. 45–50, 2021.
- [4] R. S. Boboyeva, Tax Administration and clandestine activities, Samarkand: SamISI, 2022.
- [5] D. A. Kadyrov, " the hidden economy: causes and consequences,” Economic Studies, vol. 3, pp. 25–31, 2020.
- [6] strategic reform agency under the president of the Republic of Uzbekistan, strategy for combating the hidden economy, Tashkent, 2021.
- [7] I. K. Madrahimov, "measures against the khufiyona economy in expanding the tax base," tax and customs notice, no. 4, pp. 12–17, 2022.
- [8] R. Y. Khojakulov, Taxation and the hidden economy: theory and practice, Tashkent: Innovation, 2018.
- [9] B. R. Usmanov, "mechanisms for reducing the economy of khufiyona in tax policy," problems of the National Economy, vol. 2, pp. 39–44, 2023.
- [10] S. N. Karimova, hidden economy and digital control tools, Bukhara: Bukhdu, 2021.
- [11] state tax committee of the Republic of Uzbekistan, collection of statistics on Taxation, Tashkent, 2022.
- [12] L. T. Normatova,” the role of tax audit in the identification of hidden activities, " accounting and audit, no. 6, pp. 22–28, 2020.
- [13] F. A. Tursunova, economic security and the hidden economy, Termiz: TermDU, 2019.
- [14] J. B. Saydaliyev,” the impact of tax control on the hidden economy, " economic stability, no. 2, pp. 14–19, 2022.
- [15] Institute of tax research under the Cabinet of Ministers of the Republic of Uzbekistan, methods of analysis of the hidden economy, Tashkent, 2023.
References
[1] M. T. Zhurayev, problems of the hidden economy in the taxation system, Tashkent: Economics-Finance, 2020.
[2] Sh. X. Tashpolatov, ways to improve tax policy in Uzbekistan, Tashkent: Economics, 2019.
[3] A. M. Egamberdiyev,” fiscal measures in the reduction of the hidden economy, " Finance magazine, no. 1, pp. 45–50, 2021.
[4] R. S. Boboyeva, Tax Administration and clandestine activities, Samarkand: SamISI, 2022.
[5] D. A. Kadyrov, " the hidden economy: causes and consequences,” Economic Studies, vol. 3, pp. 25–31, 2020.
[6] strategic reform agency under the president of the Republic of Uzbekistan, strategy for combating the hidden economy, Tashkent, 2021.
[7] I. K. Madrahimov, "measures against the khufiyona economy in expanding the tax base," tax and customs notice, no. 4, pp. 12–17, 2022.
[8] R. Y. Khojakulov, Taxation and the hidden economy: theory and practice, Tashkent: Innovation, 2018.
[9] B. R. Usmanov, "mechanisms for reducing the economy of khufiyona in tax policy," problems of the National Economy, vol. 2, pp. 39–44, 2023.
[10] S. N. Karimova, hidden economy and digital control tools, Bukhara: Bukhdu, 2021.
[11] state tax committee of the Republic of Uzbekistan, collection of statistics on Taxation, Tashkent, 2022.
[12] L. T. Normatova,” the role of tax audit in the identification of hidden activities, " accounting and audit, no. 6, pp. 22–28, 2020.
[13] F. A. Tursunova, economic security and the hidden economy, Termiz: TermDU, 2019.
[14] J. B. Saydaliyev,” the impact of tax control on the hidden economy, " economic stability, no. 2, pp. 14–19, 2022.
[15] Institute of tax research under the Cabinet of Ministers of the Republic of Uzbekistan, methods of analysis of the hidden economy, Tashkent, 2023.