30 percent of private sector works in shadow economy, Tajik official says

DUSHANBE, February 17, 2009, Asia-Plus  — The State Committee for Investments and State-owned Property Management (GosComInvest) today hosted a meeting to discuss the progress of implementation of the inspection system reform in Tajikistan. The meeting members included representatives of president’s office, government, IFC office in Dushanbe as well as representatives of small and medium sized […]

Payrav Chroshanbiyev

DUSHANBE, February 17, 2009, Asia-Plus  — The State Committee for Investments and State-owned Property Management (GosComInvest) today hosted a meeting to discuss the progress of implementation of the inspection system reform in Tajikistan.

The meeting members included representatives of president’s office, government, IFC office in Dushanbe as well as representatives of small and medium sized enterprises (SMEs).

Speaking at the meeting, Alisher Isoyev of the IFC Tajikistan Business Enabling Environment Project noted that surveys conducted by IFC in recent years had shown that inspections were one of the most complicated administrative procedures for SMEs.

Isoyev noted that although compared to 2007 the number of inspections has reduced but the obtained results, however, have not yet met requirements.  Reminding that the inspections law and amendments to the tax code were adopted in July 2006, he noted that IFC jointly with GosComInvest was working on supporting the government to complete reforming the inspection practice in the country.

For his part, the GosComInvest head Farrukh Hamraliyev noted that the government was continuing to take measures to improve business-running conditions in the country.  At the same time, he noted that some 30 percent of the private sector now worked in the shadow economy.

IFC’s Tajikistan Business Enabling Environment Project aims to help streamline regulatory procedures and improve the business enabling environment for SMEs.  One key reform has been in the inspections procedures.  The project team organized a series of round table discussions among entrepreneurs, business associations, inspecting agencies, government officials and donors, giving a platform for all stakeholders to voice their views about the inspection process.  The dialogue resulted in widespread agreement on the need for reform, and defined the key areas to be addressed.

The new inspection law, adopted in July 2006, limits the frequency and duration of inspections based on the risk a firm’s activities pose to public health, safety, and the environment. It establishes an official list of inspecting bodies and requires inspectorates to create and abide by checklists, which will be distributed to the public through the official sources.  The Inspections Registration Book (IRB) is another powerful tool to keep the inspections under control by the entrepreneurs themselves.  It will allow entrepreneurs to comply with requirements and prevent violations by providing advance notice of inspections and a clear record of inspection activities.

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