In a move aimed at generating additional revenue and promoting environmentally friendly practices, Tajikistan has implemented a new vehicle-scrapping tax, eurasianet reported on January 25. The legislation, approved in December, and recently disclosed to the public, introduces a one-time tax, referred to as a recycling fee, to be collected during vehicle registration or mandatory technical inspections. The funds raised from this tax are earmarked for the environmentally conscious scrapping of vehicles once they are retired from circulation.
Tax Structure and Motivation
Learning from Regional Experiences
To develop the tariff structure, Tajikistan's authorities studied the experiences of neighboring countries, including Uzbekistan, Kyrgyzstan, Kazakhstan, Belarus, and Russia. However, the reference to Kazakhstan, where a similar recycling fee led to a political scandal due to allegations of a government-appointed monopoly benefiting the family of the former president. The person or entity responsible for handling Tajikistan's vehicle recycling initiative is yet to be determined.
Government Revenue Concerns
President Emomali Rahmon has expressed concern over declining government revenue, identifying major tax debtors, including prominent entities like aluminum company Talco, Talco Gold, Sangtuda-1 hydroelectric power plant, and mobile telecommunications companies. Despite public rebukes, the mentioned companies, some linked to the president's family, might escape penalties, contrasting with the potential impact of the newly introduced vehicle-scrapping tax on motorists.
Earlier Daryo reported that Kazakhstan's Deputy Prime Minister and Minister of Foreign Affairs, Murat Nurtleu, participated in significant talks with Tajikistan's Minister of Foreign Affairs, Sirojiddin Muhriddin, as part of his official visit to Dushanbe on January 25.
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