The Government of Tajikistan is exploring the issue of establishing new free economic zones in the country.
Speaking at a session of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament), the Minister of Economic Development and Trade, Nematullo Hikmatullozoda, noted on October 30 that the government is working out a regulation on establishing a subzone of the “Ishkashim” Free Economic Zone (FEZ Ishkashim) in the Tem area of Khorog, the capital of the Gorno Badakhshan Autonomous Region (GBAO).
The government is also exploring the issue of establishing free economic zones in districts subordinate to the center, the minister added.
Four free economic zones now operate in Tajikistan: FEZ Sughd (Sughd province); FEZ Panj (Khatlon province); FEZ Danghara (Khatlon province) and FEZ Ishkashim (Gorno Badakhshan Autonomous Region – GBAO).
On March 20 this year, the Majlisi Namoyandagon endorsed the government’s decision to establish the free economic zone (FEZ) on the outskirts of the southern city of Kulob. The volume of investments attracted to this free economic zone should not be less than 300,000 U.S. dollars.
The free economic zones provide preferential terms for economic, financial, trade, information, and other activities for investors. The FEZs offer incentives to investors, including preferences on taxation and customs procedures.
In the early 2000s, foreign direct investment has remained low because of political and economic instability, the poor domestic financial system, and Tajikistan’s geographic isolation. To attract foreign investment and technology, Tajikistan has offered to establish free economic zones in which firms receive advantages on taxes, fees, and customs. In 2004, the parliament passed a law on free economic zones. The zones reportedly offer customs and tax incentives to qualified investors that invest at least 500,000 USD and import at least 90% of the technology and equipment.
