DUSHANBE, October 29, 2008, Asia-Plus — In Tajikistan, the shadow economy covers some 25 percent of economic activities, Economic Development and Trade Minister Ghulomjon Bobozoda announced at a press conference in Dushanbe on October 27.
According to him, the shadow economy is a market consisting of all commerce on which applicable taxes and regulations of trade are being avoided, “and therefore nobody knows an actual scale of the shadow economy in the country.”
According to him, the shadow economy is a typical occurrence for countries with transition economy. “The results of a survey conducted by specialists from our ministry among 2,000 households across the country have shown that actual incomes of households are much higher than official statistical data shows that is indirect evidence of existence of the shadow economy in Tajikistan,” Bobozoda said
He further added that segments of illegal economic activity were felt mainly at small and medium-sized enterprises working in agriculture, commerce and spheres rendering paid services to the population.
In the meantime, the source at the Ministry of Economic Development and Trade, who wanted to remain unnamed, noted that development of the shadow economy in the country was the result of unreasonable restrictions imposed by state regulation. “Regulation is impossible without restrictions; however, unreasonable restrictions provoke violation of them,” said he. “Thus, tax evasion is caused by shortcomings of the state regulation such as bureaucratized management, too high taxes and other factors.” The shadow economy becomes larger in those areas where corruption and regulation restrict legitimate economic activity.
