DUSHANBE, June 1, 2016, Asia-Plus – Tajikistan’s lower house (Majlisi Namoyandgon) has endorsed amendments proposed by the government to the country’s law on the national budget for 2016. The amendments, in particular, provides for granting tax benefits to individual companies and enterprises for this year.
A regular sitting of the Majlisi Namoyandagon of the fifth convocation, presided over by its head, Shukurjon Zuhurov, took place on June 1.
Presenting the bill, Deputy Finance Minister, Ms. Mehrinamo Jonmamadova, noted that the amendments were aimed at support domestic producers.
According to her, the value added tax (VAT) for flour producers was reduced from 18 percent to 10 percent.
This measure is expected to promote reduction of prices for bakery products in Tajikistan.
Besides, the bill proposes to abolish the tax on cotton fiber sales. At the same time, a 10-percent export duty on cotton fiber will be introduced.
VAT for construction companies, educational facilities and public catering enterprises will be reduced to 5.0 percent.
The bill also provides for exempting Open Joint Stock Company (OJSC) NBO Roghun from paying any type of royalty.
A royalty is a payment made by one party, the licensee or franchisee to another that owns a particular asset, the licensor or franchisor for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation.
“All these changes will not seriously affect the budget’s revenue part,” Ms. Jonmamadova noted.
