Thursday, 17 May 2012
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The government of Tajikistan, a country in Central Asia with over seven million inhabitants, is working with the Asian Development Bank to implement two programmes aimed at modernising tax administration and strengthening social protection spending programs.
The Asian Development Bank (ADB) is granting US$45 million for the two programmes, while US$25,000 will be provided by the government and an additional US$500,000 will be extended by the Korea e-Asia and Knowledge Partnership Fund.
The programmes will begin in the upcoming months and are expected to be completed by April of 2013. They are designed to help the Tajikistan government move forward with its development plan to modernise tax administration and policy in the country, and to improve the targeting and effectiveness of social benefit payments.
The first programme on public financial management, under the Ministry of Finance, will cover the improvement of tax policy and administration in the country. It will include the introduction of electronic filing of tax returns by large taxpayers and other methods to enhance the Tax Committee of Tajikistan’s tax collection and transparency.
In recent years, the Large Taxpayers’ Inspectorate of Tajikistan only generated 44% of revenues from enterprises in the country.
The second programme will focus on two projects under the Ministry of Labour and Social Protection – one on creating cards for noncash-based pension payments, and another for forming a redesigned benefits system linked to subsidies for electricity, gas and children’s education for about 10,000 households.
The projects are expected to reduce cases of fraud, and increase time and cost savings.
“Over the short term, the assistance will help ensure that critical social spending is maintained; while in the longer term, the improvements to financial management should increase government revenues,” said Debra Kertzman, Director of Public Management, Financial Sector and Trade Division at ADB’s Central and West Asia Department.
According to information from the ADB, Tajikistan is the poorest country among the Commonwealth of Independent States, with high unemployment and the lowest level of per capita expenditures on social assistance in Central Asia.
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