DUSHANBE, February 11, 2009, Asia-Plus — Deputies of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) have endorsed amendments requiring water royalty regime for large hydroelectric power plants (HPPs) and payment of royalties on underground water resources.
A regular sitting of the fifth session of the Majlisi Namoyandagon of the third convocation, presided over by its chairman, Saydullo Khairulloyev, was held on February 11.
Presenting changes and addenda proposed to the country’s tax code, the Tax Committee head Nusratullo Davaltov noted that if parliamentarian endorsed the proposed changes and addenda, 79 amendments concerning resource rents, or royalties on natural and water resources, would be made to the tax code.
“The amendments provide for payment of royalties on underground water resources and introduction of the water royalty regime for large HPPs,” said Davaltov, “The royalty regime will not affect the small power plants” According to him, power plants having capacity up to 1,000 kW are considered to be small power plant.
Speaking at the session, MP Mirzosharif Salomiddinov noted that with the introduction of the water royalty regime Barqi Tojik power holding would have to transfer taxes to the country’s budget 30 million somoni more.
“Tajikistan is in the energy crisis and it is inadmissible to introduce the water royalty regime,” said parliamentarian, “The country is currently seeking investors to construct hydropower facilities and if we endorse these changes, we will put obstacle on this way.” He noted that the water royalty regime would result in energy sector’s tax debts increasing.
For his part, the tax committee head noted that introduction of those measures was call of the times and the royalty regime would be used during construction of hydropower facilities.. “The royalties are paid only after introduction of such facilities into operation,” Davaltov said.
He also noted that Barqi Tojik power holding’s tax debts reached 112 million somoni.
After long lively discussions, parliamentarians endorsed the amendments.
