Gov’t raises fines by tenfold for illegal precious metal trade

President Shavkat Mirziyoyev has signed a law aimed at boosting the development of the jewelry industry. The document has been published on the official legal portal Lex.uz.

The law reintroduces certain tax exemptions for individual entrepreneurs who are members of the “Uzbekzargarsanoati” association and are engaged in the production of jewelry. These benefits will be in effect until September 1, 2027. Similar privileges were previously granted between October 2021 and March 2023.

Under the Tax Code, these benefits include relief from personal income tax and social tax. In addition, individual jewelers will be exempt from land and property taxes on premises used for production.

Refining companies will now be permitted to sell precious metals to jewelry producers in volumes and forms that suit their needs. They are also allowed to manufacture and sell commemorative coins made of precious metals.

Jewelers are now authorized to sell semi-finished products and blanks to other manufacturers. However, prices for these items must not fall below the rates set during the morning fixing on the London Bullion Market, according to the Central Bank’s exchange rate.

At the same time, penalties for violations of the legislation concerning precious metals are being significantly tightened. This includes illegal circulation, improper assay, and hallmarking practices. Fines will now range from 30 to 50 basic calculation units (BCUs), equivalent to 11.25 to 18.75 million UZS, a dramatic increase from the current 3 to 5 BCUs (1.125 to 1.875 million UZS).

The law was passed by the Legislative Chamber of the Oliy Majlis in December 2024 and approved by the Senate in March. During Senate discussions, the illegal circulation of precious metals and gemstones was highlighted as one of the jewelry industry’s most pressing issues.