Turkmenistan to reform fiscal policy up to 2030

Business Materials 29 September 2010 14:10 (UTC +04:00)

Turkmenistan, Ashgabat, Sept. 29 / Trend H.Hasanov /

Reform of Turkmen fiscal policy in 2011-2030 will involve the creation of "a rational, stable and predictable tax system and an effective system of public expenditures," the Neutral Turkmenistan newspaper reported on Sept. 28.

The paper presented data from the Strategic Planning and Economic Development Institute of Turkmenistan.

Such priorities as improving fiscal legislation, tax incentives for structural, investment and innovation shifts, and the development of the private sector and free competition were identified.

Turkmenistan will take measures to create fiscal parameters that meet the needs of efficient functioning enterprises and organizations of all forms of ownership during the initial phase in 2011-2015.

"The tax policy of the forecast period will contribute to improving the stimulatory effects on the development of economy, the tax system and the stable performance of its fiscal side," the paper wrote.

In addition, the state will seek to encourage small and medium-sized businesses in attempt to enhance the growth factors. It will form a single system of benefits stimulating business activity in priority sectors of the economy.

The second stage in 2016-2020 includes measures to reduce the tax burden. At this stage, optimization of direct and indirect taxes with application of differential rates for certain types of articles will be carried out.

The plan envisages the improvement of the tax system to attract direct investment in manufacturing and services, and the creation of new high-tech and export-oriented industries and related services. The country will implement projects aimed at creating an innovation economy complying with the highly-responsive information structures. In this regard, it will be appropriate to create diversified economic zones with special tax regimes and customs systems.

In the long term (2021-2030 years), a tax system aimed at stimulating research and innovation, and the information sector will be established. Foreign direct investment and the development of free economic zones will remain priorities.

During this period, the country will continue optimization of the tax system thanks to the need to improve the structure of taxes and duties; maximum unification of the tax base and the rules of calculation of certain taxes, as well as the order of their payment; and ensuring stability and predictability in the tax system as a whole.

Moreover, tax policy would be consistent with a high level, conducive to implementing the country's long-term priorities and stimulating national progress in line with the best international achievements.

The budget policy of the first phase of reforms (2011-2015) will have the basic principles of financial openness of the state and strict budgetary control, balance of resources and commitments, powers and accountability at all levels of budget system, and targeted and effective management of state assets, the paper wrote.

The primary measure will be to make an inventory of state assets and liabilities with subsequent evaluation of their effectiveness. On this basis, the state will develop a set of measures which, on the one hand, will stimulate the flow of funds in the budget, and on the other, create the preconditions for the gradual reduction of government expenditures through the transfer to the market of those assets that will perform better in the private sector.

Do you have any feedback? Contact our journalist at: [email protected]