Representatives of Alif-Bank say Tajik business people and potential investors are looking forward to the development of a new tax code.
“Despite the short terms that were given to all sectors of the economy to offer their recommendations to the draft of this important document, we find the new amendments significant, capable of giving a serious impetus to the development of the economy in the future,” the bank specialists note.
They highlighted three positive changes in the tax Code in new reading: 1) adding a section with clarifications on the taxation of financial institutions operating in accordance with the principles of Islamic banking; 2) companies are allowed to charge ad spending as expenditure; and 3) reducing the VAT rate on non-cash payments from 18% to 15%, and for some transactions to 5 percent.
Alif-Bank specialists consider that shortcomings of the draft Tax Code in new reading are as follows: 1) it is not allowed to include costs of companies on salaries to developers of their own IT products into deductions for tax purposes (for comparison, in Uzbekistan, we pay for this activity 8 percent of income, while in Tajikistan, we play for this activity 79 percent); 2) the decision to withdraw the funds of tax debtors from their bank accounts without a court order can be considered erroneous (this will completely compromise non-cash payments, forcing to keep even more money “in shadow); and 3) there is not clear the fate of the section on the IT-park (a group of tech-companies, which need preferences for development).
At the same time, the bank specialists noted that their comments were made on the version of the draft Tax code that was published on the Tax Code website on February 7.
Recall, developed by the working group in cooperation with international and domestic experts, a draft new Tax Code of Tajikistan has been put up for public discussion and it is now available on the website www.itcmf.tj/kodeks
The final version of the draft Tax Code was posted on www.itcmf.tj/kodeks on February 8 and it is available for public consultations until today.
Citizens of Tajikistan might send their comments and proposals on the draft Tax Code to the Tax Committee through the abovementioned website.
President Emomali Rahmon initiated development of a new tax code in late May 2019. He ordered to take into consideration interests of business entities and citizens of the country while developing the new tax code.
The Minister of Finance Faiziddin Qahhorzoda told reporters in Dushanbe in February last year that the new tax code should be adopted before September 2020 so that the national budget for 2021 would be worked out on the basis of it.
Qahhorzoda emphasized that members of the working group for development of the new tax code also included specialists of the World Bank and the working group had taken into consideration proposals of tax payer and representatives of the private sector while developing the new tax code.
In a statement delivered at a joint session of both houses of parliament, President Emomali Rahmon on January 26 ordered relevant ministries and agencies to complete the country’s tax code in new reading until March this year and submit it for consideration to the government.
OJSC Alif Bank was established on the basis of Alif Sarmoya (Alif Capital), which is the first micro-financing organization in Tajikistan using the principles of Islamic Finance, in January last year.
As far as Alif Sarmoya is concerned, it was established in August 2014 when the law regulating Islamic finance was finally enacted.
In 2014, Alif Sarmoya launched consumer credit which was dubbed as “Befoiz” (interest-free) by offering short-term consumer loans (4–6 months) to its customers.
In 2015, over the first nine months of its operation, Alif Sarmoya increased its financing portfolio more than three times and, as a result, it has become the fifth largest micro-credit organization among the members of the Association of Microfinance Organization of Tajikistan (AMFOT).
