Tajikistan cancels increase in VAT rates for construction of public catering

Asia-Plus

Deputies of Tajikistan lower house (Majlisi Namoyandagon) of parliament (Majlisi Oli) have seconded amendments offered by the government to the country’s tax code.

A final regular siting of the fifth session of the Majlisi Namoyandagon of the fifth convocation, presided over by its head, Shukurjon Zuhurov, took place on June 28.  

Presenting the amendments to lawmakers, Deputy Finance Minister, Karim Gulmurodzoda, noted that the amendments, in particular, provide for decreasing the rate of the value added tax (VAT) for construction of public catering facilities from 18 percent to 7.0 percent.  

Besides, the amendments provide for decreasing the VAT rate for private educational facilities from 18 percent to 5.0 percent.  

According to him, the government has taken this step in order to ensure transparency of collection of taxes in the mentioned spheres. 

“Since the beginning of this year when the VAT rate for the abovementioned spheres was set at 18 percent, receipts from these spheres to the national budget have sharply declined and many cases of tax evasion have been revealed in these spheres,” said the deputy minister.  “Therefore, the government has deiced to cancel increase in the VAT rates for these 

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