Based on the Resolution of the Government of the Republic of Tajikistan №300 on May 3, 2014, an Action Plan of the Government of the Republic of Tajikistan on Improvement of Tajikistan’s Indicators in the Doing Business Report was developed in the framework of the activities of the Consultative Council.
The implemented reforms of the Action Plan has been recognized by the international community and this year Tajikistan gained 34 position points, moving up from 166 to 132 place, and implementing 54% of the existing global best practices.
This progress achieved was mainly attributed to improvements in Starting a Business, Getting Credit, Paying Taxes and Trading Across Borders.
In particular, on the measure of Starting a Business, the country rise 24 points to 57th place among 189 countries in the world from the 81th position last year. This translates to 90% of the global best practices. The improvement is the result of implementation of computerized issuance to streamline issue of the Social Tax Payer’s number by the Agency for Social Insurance and Pension. The new single window service provides the Social Tax Payer’s number along with other documents in single location (time burden: 3-5 working days through the Single Window system).
On the Getting Credit indicator, the country's position rose 9 points from 118th position last year, which constitutes 40% of the global best practices. This increase is due to the implementation of the private credit bureaus, which led to the improved availability of credit information and wider coverage of the population by credit bureaus.
On Paying Taxes, the Republic of Tajikistan gained 6 points on the global ranking, moving up from the 178th position last year to 172th in position in 2016, implementing 43% of the global best practices. This success is due through the reduction of in the number of tax payments from 31 to 28 times per year and also due to the introduction of the electronic filing of tax returns.
Tajikistan has gained 27 positions on Trading across Borders, reaching 132th position and achieving 57% of the global best practices. Tajikistan has completed major reforms in the customs administration, implementing the single automated information system by the custom authorities, which now offers a single window for processing the export-import and transit procedures. The innovations will also established an electronic processing of customs declarations.
In addition on above mentioned indicator, the country lost 2 positions on such Dealing with Construction Permits, loss of 1 position on Getting Electricity, and 1 position on Registering Property. In further setback in Protecting Minority Investors, Tajikistan lost 2 positions since last year.
The country’s ranking on Enforcing Contracts and Resolving Insolvency indicators remained unchanged for 2016.
In particular, Tajikistan lost positions on the Dealing with Construction Permits indicator, which was due to an increase in the number of procedures from 24 to 27, lengthening the time required to perform these procedures from 228 to 242 hours, as well as an increase in the cost of the procedures from 1.9% to 2.2% of the cost of construction (standardized case – a warehouse building).
Fall of country's position by one rank on the Getting Electricity is connected with the introduction of the Reliability of supply and transparency of tariff index in this issue of the Doing Business index, according to which the country gained no points out of the 8 possible. This is primarily the result of poor quality of power supply and a large number of power interruptions, including blackouts without prior warning. The interruptions lead to heavy losses in enterprises, especially those in the manufacturing sectors. Despite this, currently, the losses incurred due to the power outage are not reimbursed by OSHC "Barki Tojik" and its local representatives.
The loss of position on the Registering Property indicator by 1 position point is associated with the correction to the new Quality of the Land Administration Index, in which the country receives 7.5 out of 30 possible points. The indicator shows that registering property requires 6 procedures, 37 days, and cost 3.4% of the property value being registered. At the regional level, this figure is made up of 5.4 procedures and 22 days, with a cost of 2.6% of the final cost of ownership. The regional average is 19.4 points on the Quality of Land Administration index.
According to the indicator Protecting Minority Investors, the position of the country has been reduced 2 points and country’ position fell from 27th to 29th. Despite this shortfall, the position of the country is still above the average at the regional level (13).
In general, the international experience indicate that the steady development of businesses and investment is based on the three main factors of simplification of regulatory procedures, fast public service delivery and fees that correspond to services delivered.
