WB recommends Tajikistan to improve tax administration
Baku, Azerbaijan, March 14
Analysts of the World Bank (WB) recommend that the Tajik authorities improve tax administration, TajikTA news agency reported.
The WB analysts believe that this can increase the level of private investments and promote economic development in Tajikistan, according to the report.
“Revenue collection in the country remains challenging,” the WB said in a report posted on its website. “This is due to several factors, including poor quality taxpayer services, low institutional capacity, and gaps in tax policy analysis and revenue forecasting. Inadequate staffing, limited training, low levels of computerization and poorly integrated IT systems have further complicated procedures for taxpayers and make data collection difficult for Tajikistan’s Tax Committee.”
“Coupled with reported corrupt practices by tax officials, these issues contribute to weakening both the business climate and private sector growth,” the report noted. “Business surveys have regularly identified weaknesses in tax administration, as well as arbitrary and corrupt behavior by tax officials, as major impediments to the success of small and medium enterprises in Tajikistan.”
“To support the government’s efforts to build a more efficient, transparent and service-oriented tax system, the World Bank-financed Tajikistan Tax Administration Reform Project was launched in 2013,” the report said. “The Project has made significant progress to date in helping the Tax Committee and its field offices to operate more effectively in a newly automated environment. Modernization of IT infrastructure and the introduction of a unified tax management system mean increased efficiency, with reduced physical interaction between tax officials and taxpayers.”
“The Project has achieved good results and we can see significant improvements in the operational capacity of the Tax Committee,” said Hassan Aliyev, project leader and World Bank Public Sector specialist based in Dushanbe. “However, tax administration is just one part of an effective tax system. We will continue working with the Government of Tajikistan to further improve the effectiveness of tax policy in terms of revenue collection, and to that ensure taxation does not impose a negative burden on the business environment.”