Can tax administration defeat the shadow economy?

The volume of the shadow economy in Uzbekistan reached 505.6 trillion soums, with the largest share falling on agriculture, construction, and the service sector. In recent years, a number of reforms have been implemented to improve tax administration, popularize electronic payments, and introduce digital control mechanisms.

This article analyzes the positive and negative aspects of introducing cashless payments, a unified QR code system, transparent payment mechanisms for real estate and vehicles, as well as a universal declaration system.

Is strengthening tax control sufficient to reduce the scale of the shadow economy? How much do digitalization and electronic payments make the economy transparent? Read the full text of the article to find answers to these questions.