New version of the draft law “On government support to small and medium business” was considered today, April 26, by the State Investment and State Property Management Committee.
Representatives of the President’s Office, related ministries and departments of the republic as well as representatives of private sector and international organizations took part in the discussions.
Deputy Head of the Committee Manzura Mahkamova said the new version of the law is called to ensure more favorable conditions for small and medium business, expand this sector and ensure competitiveness of business entities.
The Committee’s Legal Expert Sarvar Halikov told AP that President of the Republic ordered to design a new law “On government support to small and medium business” taking into account the realities of current conditions and submit it to the government till the end of this year.
Halikov stressed that the existing law was designed back in 2002. Since then the global economy and national legislation have changed.
“The existing law which regulates business activity is out of date,” he said.
He believes that the government does not provide enough support to business environment in the country.
“The new law will regulate level of governmental support to small and medium business. The new law will provide environment for establishment of specific funds which will allocate business credits on preferential terms,” he said.
Furthermore, a new universal register will specify to which business entities credits will be issued and at what rates.
Halikov said that high interest rates, which are offered to businessmen by local banks, are very high and this is the main problem Tajik businessmen face with.
“30-60% rates per annum are too high for any businessman. These conditions can exist in trade sector only. It is impossible to take credits in banks for establishment of a new production line since it requires too much time,” he said.
Another problem Tajik businessmen are facing with is a quite complicated is a licensing system.
“Even though last year we designed and approved the law “On licensing system” businessmen still face too many problems with government structures. In 2011 the list of licensing issues was reduced from 600 to 86. Now we are planning to reduce this number by 50%. Furthermore, the less businessmen will contact with government officials, the lower corruption level we will have,” he added.
