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Unofficial payments by small business owners impede economic development in Tajikistan

DUSHANBE, January 6, Asia-Plus  A roundtable meeting was held in Dushanbe on January 5 to discuss the results of a joint survey carried out by the International Labor Organization (ILO) and the National Association of Small and Medium Business of Tajikistan.

Chairperson of the National Association of Small and Medium Business of Tajikistan, Ms. Matluba Uljaboyeva noted that the survey entitled “Development of Competitiveness and Productivity of Entrepreneurship in Tajikistan” was carried out by the closed joint-stock company (CLSC) “Legal Consulting Group” in June last year.  During the survey they polled 450 respondents including representatives from private sector, state-run enterprises and non-government organizations. 

“250 of those polled are residents of Dushanbe and districts subordinate to the center (RRP), 10 respondents were from Sughd and 100 other respondents were from Khatlon,” Ms. Uljaboyeva said, noting that three branches of economy had been selected for carrying out the survey – agriculture, production of consumer good and trade.  “The Surveys results have shown once again that along with donor aid development of small business is important factor,” Ms. Uljaboyeva stressed.

The “Development of Competitiveness and Productivity of Entrepreneurship in Tajikistan” survey head also representative from the “Legal Consulting Group” company, Ms. Anna Sotnikova noted that more than 60 percent of small business owners in Tajikistan have made unofficial payments.  Of them, 75 percent pay more than 10 percent of their annual income.  “It is real disaster for Tajikistan’s economy,” Ms. Sotnikova. 

She noted that the main problems small business owners in Tajikistan faced were, first of all, shortage of accurate and timely information about new legal documents.  “The country’s system of legal proceedings also does not inspire with confidence,” noted the Legal Consulting Group representative, “All this and many other things impede development of small and medium-sized business in Tajikistan.”  “When familiarizing himself with legal environment in Tajikistan one may form the impression that there are no any barriers and obstacles in the way of development of entrepreneurship,” said Ms. Sotnikova, “But in practice, the situation leaves much to be desired”.   But good laws and regulations are not useful if they are not implemented fairly and honestly. 

The other problem impeding economic development in Tajikistan is undeveloped tax systems, according to her.  “Of those surveyed, 89 percent named tax system in Tajikistan one of the most serious obstacle impeding development of business in the republic,” she stressed.  The majority of those polled also noted that among other factors impeding development of entrepreneurship in Tajikistan were low access to getting loans, customs requirements, the necessity of making unofficial payments, etc.  

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