The Asian Development Bank (ADB) Director for Tajikistan, Pradeep Srivastava, considers that despite promises of the Tajik authorities, in fact nothing has changed in the country’s tax system.
ADB will provide technical assistance to Tajikistan to develop the new tax code.
“The Government of Tajikistan has applied to the Donor Coordination Council for technical support for development of a new tax code,” Mr. Pradeep Srivastava told reporters in Dushanbe on December 6.
He noted that ADB had approved the technical assistance project that would be launched within the next two months.
After the launch of the project, ADB will begin an active interaction with the government in development of a new tax code.
ADB director for Tajikistan proposes to change orientation of the country’s tax legislation, which is currently, according to him, focused on collection of money.
Mr. Srivastava proposes to focus the new tax code on motivating taxpayers.
“That means three points: firstly, tax burden must not be so heavy; secondly, more transparency must be in taxation; and thirdly, there should be predictably of taxation – what the tax rates should be,” he said.
Having said this, he also notes that all changes made to the tax legislation should be not only on paper, but also in practice.
As an example, he recalled that ADB in 2016 provided budgetary support to Tajikistan in exchange for fulfillment by the government of certain requirements.
“One of the requirements at that time was a reduction in the number of inspection bodies. What happened? On paper, the number of inspection bodies was reduced, but we have not seen actual evidence of this. Representatives of business have complained that in fact the picture has not changed,” ADB director for Tajikistan said.
He also noted a small amount of private investments made in the country’s economy and problems facing small business.
