DUSHANBE, September 20, 2013, Asia-Plus — The Tax Committee under the Government of Tajikistan has published a guide for establishing the rates of sales taxes on primary aluminum and cotton fiber, which are Tajikistan’s main export products.
The guide, particular, notes that while establishing the rates of sales taxes on primary aluminum and cotton fiber they took into account the price of the sold product with regard to the prices of taxable commodities at the London Metal Exchange (primary aluminum) and the Liverpool Cotton Exchange (cotton fiber).
The rate of 3 percent is established for sales tax on primary aluminum and the rate of 10 percent is established for sales tax on cotton fiber.
Tajikistan is Central Asia’s biggest producer of primary aluminum. Tajikistan relies heavily on the smelter”s earnings.
The aluminum plant, run by the Tajik Aluminum Company (TALCO), was launched in late March 1975. It is one of the ten largest aluminum smelters in the world and provides up to 80% of the country’s foreign currency earnings, consuming 40% of the country’s electrical power. Tajikistan does not mine alumina but imports the raw material through tolling arrangements.
Cotton fiber reportedly accounts for more than 16 percent of Tajikistan’s export.
