Tajikistan has decided to regulate the procedure of providing tax customs benefits. They will now be provided on the basis of fiscal bodies’ assessments.
Government’s decree issued on December 31 has endorsed the procedure of providing tax and customs duties. The procedure reportedly determines and regulates requirements of providing tax and customs benefits as well as the assessment of effectiveness of the provided or being provided benefits.
In accordance with this decree, the primary analysis of the effectiveness of benefits is carried out by tax and customs bodies.
The results of assessment carried out by these bodies must be submitted to the authorized body (the Ministry of Finance) until May 1 of the next year, which, in turn, submits the proposals to annul inefficient benefits or to prolong the effective benefits for consideration to the government.
Taking into account the final assessment of the effectiveness of the provided benefits, the authorities develop the revenue side of the national for the next fiscal year.
In Tajikistan, tax and customs receipts account for 70 percent of the national budget’s revenue part.
The new document prohibits from providing individualized benefits, that is, preferences to individual enterprises and organizations.
In accordance with the decree, tax and customs benefits are provided to suppliers of wheat, special vehicles purchased at the expense of the national budget, suppliers of fuel oil for the Dushanbe-2 combined heat and power (CHP) plant and coal for Murgab district in the Gorno Badakhshan Autonomous Region (GBAO) as well as the Agency on Production, Purchase, Reservation and Sale of Essential Goods in Dushanbe City.
Certain benefits are also provided to contractors and builders of secondary schools, the National Theater and Ismoili Somoni Hotel in Dushanbe.
Recall, a company constructing Ismoili Somoni Hotel in Dushanbe has received tax benefits again. The country’s budget for 2021 notes that the company constructing a 5-star Ismoili Somoni Hotel in Dushanbe will be exempted from paying value added tax (VAT), profit tax and road user tax. The construction of Ismoili Somoni Hotel officially commenced in Dushanbe on March 15, 2006. The hotel was expected to be completed before the end of 2018 and to be put in commission in 2019. However, Ismoili Somoni Hotel is being constructed for already fourteen years and the company constructing the hotel has enjoyed tax breaks all these years being exempted from paying VAT and custom duties.
Besides, the Tajikistan Football Federation (TFF) and football cubs are exempted from paying some taxes.
Blank biometric passports and some seed varieties are also delivered to the country on a preferential basis.
Tax benefits are also provided the branch of Tractebel Engineering S.A., which is working at the site for construction of the Roghun hydroelectric power plant (HPP).
Besides, this year, tax benefits have been provided to suppliers of goods and materials used for construction of ten residences to host high-ranking guests, and to Closed Joint-Stock Company (CJSC) Agrotekhservis (Agri-tech Services) for delivery of spare parts, materials and some component parts.
Building materials, goods and equipment for creation of the state-of-the-art greenhouses, the list of which is approved by the government, are also exempted from payment of customs duties and some taxes.
