1 June 2010
During the last several years Tajikistan has achieved significant progress in improving Doing Business indicators, including in the indicator “Dealing with Construction Permits”. According to the latest DB 2010 report, Tajikistan was among top ten reformers. The results were achieved thanks to political support for the reforms by the President of the country, hard work of state bodies, participation of the private sector and donor assistance. An example is the joint work and effective collaboration of Agency for Construction and Architecture, Association of Builders of Tajikistan, and USAID project on improving business climate that contributed to development of construction sector of the country. Despite the reforms, some important impediments on the way to the growth of the sector and investments still need to be tackled. An example would be issues related to the construction process, i.e.: 1. Bidding procedures for projects with the smallest budget. 2. Inspection of the works completed by construction companies that won the bidding. 3. Double taxation of works, services and goods. At the moment inspection of the works completed by construction companies that won the bidding is the most pressing one. According to the Inspection Law of the Republic of Tajikistan, State Finance Control will inspect only specific operations of the construction company in relation to the main inspection, with the aim to verify the accuracy of the information in the books. However, in practice inspection authority inspects in details all information in relation to the construction object. This is made possible due to the misalignment of legislation. There are also a number of issues related to the practice which also need to be addressed. Association of Builders of Tajikistan, an active and relatively young representative of private sector continues to work on preparation of recommendations and proposals for elimination of barriers on the way of sector growth, as well as simplification administrative procedures to reduce financial and time burdens. The Association contacted the Secretariat of Consultative Council on Improvement of Investment Climate under the President of Republic of Tajikistan with the request to consider the price list setting and inspections issues in the upcoming Council meeting. At the moment Secretariat of Consultative Council on Improvement of Investment Climate under the President of Republic of Tajikistan is collaborating with the Agency, the Association and USAID project on preparation of rationale and specific recommendations for improvement of legislation that will be proposed in one of the next Council meetings.