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Bishkek (AKIpress) - The International Finance Corporation, a member of the World Bank Group, has helped to organize a two-day workshop in order to simplify tax policy in Kyrgyzstan, Tajikistan and Uzbekistan, and encourage regional economic development.
Starting today in Bishkek, IFC and the Vienna University Academy of Public Finance are hosting the event to boost the effectiveness of value-added tax (VAT), which sometimes limits investment into key sectors such as mining and agriculture. The workshop brings together businesspeople and officials to learn from the experiences of each country and study global examples of successful reform.
“Despite being a neutral and transparent tax instrument, VAT, if not properly set up, may result in an increased compliance burden on businesses,” said Sobirdjon Vazirov, Department Head, State Tax Committee of Tajikistan. “Setting clear and straightforward VAT guidelines provides clarity to businesses and helps governments retain tax revenue.”
Christopher Miller, IFC’s Central Asia Investment Climate Program Manager, said: “Well-designed tax administration is a key element of investment climate reform and can reduce costs for both the public and private sectors. This is critical in attracting investment and in encouraging voluntary compliance with tax regulations, thus encouraging businesses to join the formal economy and widen the tax base.”
The initiative is part of IFC’s efforts to improve the investment climate in the region by facilitating investments and reducing compliance costs for businesses. The Central Asia Investment Climate Program is made possible with financial support from the government of Switzerland and the United Kingdom’s Department for International Development.