IFC Helps Tajikistan Launch Simplified Taxation System for Small Businesses
In Dushanbe:
Iskandar Usmonov
Tel: (+992 48) 701 14 68
E-mail: IUsmonov@ifc.org
In Moscow:
Ilya Sverdlov
Tel: (+7 495) 411 7555
E-mail: ISverdlov@ifc.org
Dushanbe, Tajikistan, June 13, 2008—IFC,
a member of the World Bank Group, has helped Tajikistan's government launch
a simplified taxation system that will ease the process of calculating
and paying taxes for small business owners. Beginning in July 2008, the
new lump-sum taxation system will combine income, social, and retail trade
taxes into one fixed payment.
On average, small businesses in Tajikistan are visited by tax inspectors
six times per year. The new system will shorten considerably the time required
for entrepreneurs to comply with tax regulations. It is one of several
policy recommendations by IFC that have been adopted by the government
since 2006, when IFC published the survey entitled "Business Environment
in Tajikistan as Seen by Small and Medium Enterprises." About 100,000
individual entrepreneurs will benefit from the efficiencies of the new
system.
"This system will reduce the number of inspections significantly as
well as promote the expansion of individual entrepreneurs into new spheres
of economic activity," said Ahliddin Davlatov, Tax Committee representative.
In addition to reducing costs associated with compliance, the system will
include broader categories of economic activity. "Under the old system,
entrepreneurs had limited ability to expand their businesses. For example,
a bread baker could not start selling sweets without paying additional
taxes to obtain a separate permit for their sale. The new system consolidates
the activities of small businesses from 49 categories to 28 broader ones.
So, a bread baker will now be able to expand his food product line without
incurring extra time and costs," said Alisher Isaev, Policy Advisor
for the IFC-Tajikistan Business Enabling Environment Project.
To date, IFC has conducted two comprehensive surveys of small and medium
enterprises in Tajikistan. IFC also helped draft the new Inspections Law
and amendments to the Tax Code, which were adopted in 2006 and resulted
in an estimated savings of $7.6 million in direct and indirect costs for
Tajikistan's SMEs. In partnership with NGOs and other organizations, IFC
conducted 71 trainings for entrepreneurs and more than 600 government officials
on the Inspections Law and reformed inspection procedures. IFC has also
created checklists for use by inspection agencies and brochures on the
new inspection procedures.
IFC's work to improve Tajikistan's business environment is supported with
funds from Switzerland's State Secretariat for Economic Affairs.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
About SECO
The State Secretariat for Economic Affairs is the Swiss Confederation's
competence center for all the core issues related to economic policy. Its
aim is to create basic regulatory and economic policy conditions to enable
business to flourish and benefit all. SECO also represents Switzerland
in the large multilateral trade organizations and international negotiations,
and is involved in efforts to reduce poverty and help developing countries
with transition economies build sustainable democratic societies and viable
market economies. Each year, Switzerland spends about 1.9 billion francs
on development cooperation and transition assistance to countries.
|
