THE ROLE OF INSTITUTIONS IN ELIMINATING THE PROBLEMS OF TAX POLICY IN THE FORMAL AND INFORMAL ECONOMY

Abstract

This article examines the structural differences between formal and informal tax policy in Uzbekistan, analyzing the economic consequences of tax evasion on state budget revenues and GDP dynamics. Drawing on official statistical data for 2019–2025, the research identifies institutional weaknesses that enable the shadow economy to persist and proposes a set of policy-driven solutions involving inter-agency cooperation, tax incentive reforms, and international integration. The findings suggest that a multi-layered institutional approach is essential for achieving sustainable fiscal transparency.