DUSHANBE, May 28, 2014, Asia-Plus – International Finance Corporation (IFC) has helped organized a two-day workshop in Bishkek, Kyrgyzstan on May 27-28 in order to simplify tax policy in Tajikistan, Kyrgyzstan and Uzbekistan and encourage regional economic development.

IFC and the Vienna University Academy of Public Finance held the event to boost the effectiveness of value-added tax (VAT), which sometimes limits investment into key sectors such as mining and agriculture.  The workshop reportedly brought together businesspeople and officials to learn from the experiences of each country and study global examples of successful reform.

“Despite being a neutral and transparent tax instrument, VAT, if not properly set up, may result in an increased compliance burden on businesses,” said Sobirjon Vazirov, Department Head, Tax Committee under the Government of Tajikistan.  “Setting clear and straightforward VAT guidelines provides clarity to businesses and helps governments retain tax revenue.”

Christopher Miller, IFC’s Central Asia Investment Climate Program Manager, said: “Well-designed tax administration is a key element of investment climate reform and can reduce costs for both the public and private sectors. This is critical in attracting investment and in encouraging voluntary compliance with tax regulations, thus encouraging businesses to join the formal economy and widen the tax base.”

The initiative is part of IFC’s efforts to improve the investment climate in the region by facilitating investments and reducing compliance costs for businesses.  The Central Asia Investment Climate Program is made possible with financial support from the government of Switzerland and the United Kingdom’s Department for International Development.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, it uses its capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, IFC’s investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges.