1255 GMT December 02, 2021
The Ministry of Foreign Affairs of Tajikistan has pledged to inform the countries about the unilateral status of the visa-free law.
This measure, most likely, is aimed at increasing the attraction of investment and foreign tourists.
Tajikistan currently enforces visa-free law for 58 countries.
According to the law, from January 1, 2022, citizens of Australia, the UAE, Luxembourg, Brunei, Kuwait, Qatar, New Zealand, US, Iceland, Canada, Switzerland, Malaysia, Hungary, Austria, Argentina, Germany, Dominican Republic, Indonesia, Italy, South Korea, Cuba, Latvia, Lithuania, Maldives, Poland, Portugal, Singapore, Turkey, Philippines, Finland, France, Croatia, Czech Republic, Chile, Sri Lanka, Ecuador, Estonia, Greece, Liechtenstein, Monaco, Saudi Arabia, Bahrain, Belgium, Denmark, Spain, the Netherlands, Norway, Thailand, Jordan, Sweden, Jamaica and Japan can enter Tajikistan for 30 days without a visa.
The geographical location of Tajikistan has a great strategic importance.
Being in the heart of Central Asia, Tajikistan has real opportunities to become a special link between the countries of the region.
Any country has features that attract interest of foreign investors. Tajikistan is a politically stable country with modern legislation aimed at development of economy, private sector and investment climate.
Today, Tajikistan successfully continues implementation of institutional, economic and social reforms, gradually expanding its network with many countries of the world and international organizations.
Over the past 10 years, the country has attracted more than $8 billion of foreign investment.
In accordance with the National Development Strategy of the Republic of Tajikistan until 2030 these investments were mainly directed to energy, transport and road construction, industry and agriculture, communications, finance and banking and tourism sectors.
Such initiatives include projects for construction of large- and medium-sized hydroelectric power plants, industrial, transport and communication facilities and development of tourism infrastructure.
The total inflow of foreign investment in recent years has amounted about $1 billion annually, while FDI remains at a constant level. However, it is extremely important for the republic to significantly increase the level of foreign direct investment, especially in small- and medium-sized businesses.
The main sectors for investment over the five years ending 2020 were: Industry and mining, including processing of raw materials. There is a noticeable tendency of investment increase in the agricultural sector, and especially in tourism.
Based on an analysis of goods import to Tajikistan in recent years there was developed a list of more than 300 types of activities for development and implementation of investment projects in the Republic of Tajikistan.
Based on this list, the government has developed more than 50 investment projects in various sectors of the economy.
The Government of the Republic of Tajikistan, in order to improve the investment and business climate, has brought the legislation of Tajikistan in line with international legal acts, thereby guaranteeing the rights of investors.
The Republic of Tajikistan, as a member of the World Trade Organization (WTO), has a diversified economy. In recent years, more than 100 legal acts have been adopted in Tajikistan to meet the requirements of the organization.
Favorable conditions were created for doing business in Tajikistan, for example:
- The legislation is constantly harmonized;
- Profit can be freely repatriated;
- Foreign companies have free access to the country's resources;
- The legal status is guaranteed for 10 years from adverse changes.
Given the positive impact of the implementation of business and investment initiatives on the economy, five free economic zones were created in the republic, where more than 70 business entities successfully operate.
The subjects of free economic zones are exempt from all taxes and customs duties, with the exception of social and income taxes of employees.
The advantages of these zones, in particular:
Currently, the country's legislation provides nearly 110 tax and customs incentives, including companies that are exempt from income tax for up to five years, depending on investments volume.
Following sectors are most attractive for private sector cooperation between two countries.
1) water resources and hydropower
3) Light industry
The total hydropower potential of Tajikistan is 527 billion kW / h, and 95% of this potential awaiting development and investment. Since independence, 283 small hydropower plants with a total capacity of more than 30,000 kW were constructed.
Tajikistan plans to build more than 7 small hydropower plants in the coming years.
The Central Asia-South Asia energy project, commonly known as CASA1000, a $ 1.16 billion project, is currently under construction. It will allow to export of surplus hydropower from Tajikistan and Kyrgyzstan to Pakistan and Afghanistan.
During Hydro Power Plant (HPP) construction, investor and general contractor are fully or partially exempted from:
• tax of road users;
• income tax (tax paid under the simplified system);
Tajikistan can offer many business and investment opportunities. In order to stimulate investment and doing business in Tajikistan, the Government of the Republic adopted a large number of laws and
regulations to attract foreign companies and capital to Tajikistan.
Implementing planned reforms, Tajikistan gradually improves its position in international ratings, particularly, 4 times the country was included in the top 10 reformer countries of the World Bank's Doing Business report.
In 2018, the idea came up to create an interactive platform for entrepreneurs to create a place where all market participants would have the opportunity to introduce themselves, their products and services, contact with each other and have access to information about all aspects of the business world.
The portal provides information and services in such areas as:
1. A single source of business framework information
2. Databases (especially for investment projects)
3. Assistance in business promotion (consulting)
The portal is designed to guide market participants in all business processes in Tajikistan.
Favorable conditions for doing business in the country attracted international companies and organizations.