Tax Reform Operation

The development objective of Tax Reform Operation Project for Tajikistan is to simplify the tax system, enhance quality of taxpayer services, and improve voluntary compliance. The operation is planned to cover the implementation period of 2021–2026 and it supports the government program. The government program is anchored on the development of the new edition of the Tax Code, which started in 2020. The scope of activities is based on the action plan under the government program, but the activities will be reorganized by the following three result areas: (a) Result Area 1 - Simplified Tax System, the PforR component will support improvements in tax policy, which will make the tax system simpler, more transparent, and less distortionary, including elimination of preferential tax regimes and associated tax incentives.; (b) Result Area 2 - Improved Quality of Taxpayer Services, aims to increase automation of taxpayer services is central for the GoT to improve the quality of taxpayer services ; and (c) Result Area 3 - Improved Voluntary Compliance, under this result area, TC efforts on enhancing voluntary compliance will be supported.