DUSHANBE, December 23, 2009, Asia-Plus  -- The Agribusiness Association of Tajikistan (AAT) has conducted a survey to identify the main problems facing farming units and suppliers of agricultural production means in the country.

According to the AAT lawyer Shavkat Umarov, the survey was conducted in the framework of the USAID Business Environment Improvement (BEI) Project with support from ACTED (The Agency for Technical Cooperation and Development) and CECI (The Canadian Center for International Studies and Cooperation).

Speaking at the roundtable meeting “Exemption of Import of Agricultural Production Means from VAT as One of Efficient Mechanisms to Strengthen and Develop Agrarian Sector of Tajikistan” in Dushanbe, Umarov noted on December 22 that the survey targeted 547 farming units and 25 agricultural production means supplies in Sughd and Khatlon provinces as well as Gorno Badakhshan.

According to him, the most serious problems facing farming units include an acute shortage of crop protection products (CPPs), mineral and organic fertilizers, seeds shortages and lack of specialized agricultural machines as well as improper water supply excess.

He also noted that according to expert estimates, farms are losing up to 40 percent of harvests per year because of shortage of CPPs and fertilizers.  “High rates of taxes and customs duties as well as complex permit-granting system make the country’s agrarian sector unattractive,” the lawyer stressed.  

“The findings of the survey show that it is necessary to cancel VAT for imported agricultural production means. The cancellation of the VAT will promote strengthening and development of the agrarian sector of Tajikistan.”

AAT intends to work out appropriate recommendations on the cancellation of the VAT for imported agricultural production means and submit them for consideration to the government, Umarov added.