WASHINGTON (World Bank press service) – A $US 18 million grant for the Tajikistan Tax Administration Reform Project will support reforms aimed at effectiveness of the tax system, thus supporting the long-term strategic efforts of the Government of Tajikistan to improve the business environment and competitiveness and attract more domestic and foreign investments.

The goal of the Tajikistan Tax Administration Reform Project is to contribute toward a more efficient, transparent and service-oriented system that would reduce administrative costs of tax collection, improve quality of taxpayer services, enhance the level of voluntary compliance, and reduce the size of the shadow economy. By promoting an effective tax administration the project contributes to improved public finance management and better business environment – two key reforms also supported by other Word Bank financed activities in Tajikistan. Various components of the project will improve institutional and operational capacity of the Tax Committee and its field offices to streamline business processes and operate effectively in a new automated environment.

The Tax Administration Reform Project is developed in the framework of the World Bank’s Country Partnership Strategy for Tajikistan for 2010-2013, which emphasizes the need for removal of institutional barriers to economic growth, development of a highly competitive investment climate, and paving the way for post-crisis recovery and sustainable development.

The active portfolio of the World Bank in Tajikistan currently consists of 14 projects with a net commitment of US$ 236 million. The largest share of the portfolio is in agriculture and rural development (27%), followed by energy (24%), water (18%), human development – education, health and social protection (24%), the private sector (4%) and the public sector (2%).

Budgetary support

In the same day, the World Bank’s Board of Executive Directors approved a US $ 20 million grant for the budgetary support to the Government of Tajikistan. The sixth Programmatic Development Policy Grant (PDPG6) is part of a series of grants provided since 2009, which support the Government of Tajikistan’s efforts to mitigate the impacts of the global economic crisis, promote sustained growth and reduce poverty.