Taxation named as a serious impediment to business development in Tajikistan.

DUSHANBE , 5 January, Avesta news agency - Tajik employers called taxation a most serious impediment to business development.

5 January 2006

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This conclusion is contained in a study prepared by the ILO together with the National association of small and medium-size business under the project on Capacity building of employers' organizations for competitiveness and production increase. The survey results were presented in Dushanbe on Thursday.
The project has been implemented in Tajikistan since March 2005. The survey covered 450 respondents in Khatlon, Sogdi regions and the city of Dushanbe. The respondents were asked to rate various problems with 1 point given to the most serous ones, to 5 points for problems that did not impede business development.
According to the survey, 'unofficial payments' to the Government officials represent another major obstacle for the growth of the transition economy. The report notes that such payments create a ground for an unfair competition.
In the course of the survey entrepreneurs were also asked to assess the State's interference in the private sector. Only 10 per cent of the respondents believe that such interference is gradually decreasing. The overwhelming majority consider State intervention as 'stable' (43%) and 'not changing from year to year' (62,%).
According to the Tajik entrepreneurs, the main impediments to the business development in Tajikistan are high taxes, financial problems, corruption and the lack of legal knowledge among the businessmen.