Tajikistan is Close to Flat Tax

Kovács, O. (2010): Tajikistan is Close to Flat Tax. News of the Month, ICEG European Center, September 2010 pp. 9-14.

The aim of this article is to answer the question whether Tajikistan could be considered as a successful country with its two tax rates of 8% and 13% which is close to the flat rate. It seems that Tajikistan is more likely to benefit from a flat tax system than high income countries. The country could exploit its opportunities by providing a more competitive and transparent tax system both for domestic and foreign investors. The introduced lower tax rates have already enhanced the economic activity, but Tajikistan has to permanently concentrate on debt reduction in order to dampen the risk premia. Furthermore, Tajik government should curb the versatility of inflation in order to provide a better business environment for investments.