Tashkent Entrepreneurs Complain About Opaque Permit and Land Registry Procedures

Tashkent, Uzbekistan (UzDaily.com) — During a meeting at the Chamber of Commerce and Industry on 29 August, construction industry entrepreneurs discussed challenges stemming from opaque procedures for obtaining permits and registering cadastral documentation.

Businessman Usmanjon Abdusamatov, owner of several construction companies, stated that these procedures foster the shadow economy and create significant additional costs for businesses. He noted that land prices in the capital are often undervalued, prompting unofficial transactions.

As a solution, Abdusamatov proposed setting fixed land prices: US$100,000 per sotka in the Mirzo-Ulugbek district, US$40,000 in Sergeli, and US$50,000 near the Chorsu market. He believes this would legalize actual land values and make the market more transparent.

Abdusamatov also highlighted the complexity of obtaining construction permits, noting that applications are often rejected without explanation, and accelerating the process typically requires informal “extra payments.” For a house costing around US$500,000, such “expedited fees” can reach US$50,000–100,000 or more.

Particular concern was raised about cadastral authorities. Abdusamatov cited cases where a single application was returned up to ten times. He suggested introducing personal accountability for officials who issue unjustified rejections and noted that in Tashkent, additional approval costs can reach US$200,000 per project, and up to US$100,000 in other regions.

“If these costs were eliminated, businesses would be ready to pay taxes in full,” he emphasized, calling for transparent rules and accountability for bureaucratic delays.

Chamber of Commerce and Industry Chairman Davron Vakhabov agreed that the issues are serious but reminded that construction companies themselves often avoid transparency: selling housing at undervalued prices, understating employee numbers, and listing building materials as contributions to charter capital.

According to the Chamber, official reports show just 6–8 workers on construction sites, while in reality up to 200 people are employed. Some developers sell apartments at 1.2–1.3 million soums per square meter, whereas compliant companies charge at least 15 million soums, sometimes 40–50 million soums.

Vakhabov noted that such practices undermine trust in the market and push honest players toward the informal economy. He stressed that tax evasion is unacceptable, especially for companies serving local community needs.