In Tajikistan, the government is writing off debts of enterprises under its own jurisdiction

OJSC “Sughdiyon,” owned by the Agency for State Material Reserves under the Government of the Republic of Tajikistan, has been declared hopeless and is set to be written off. The corresponding resolution, published on the legal information portal of the Ministry of Justice, was adopted by the government on March 1, 2024.

“Tax arrears of Open Joint Stock Company ‘Sughdiyon’ for taxes, fines, and interest that accumulated before September 26, 2023, and remain unpaid in the amount of 831,451 (eight hundred thirty-one thousand four hundred fifty-one) somoni, including taxes of 498,783 somoni, interest and fines of 332,668 somoni, are to be recognized as hopeless and written off according to the appendix,” the document states. In 2010, a government resolution transferred 100% of the state shares of OJSC “Sughdiyon” to the Agency for State Material Reserves. However, there is no public information about the company’s activities.

The Agency for State Material Reserves was established under the government of the Republic of Tajikistan by a resolution dated December 30, 2007. This agency is the central executive authority that implements state policy in the area of state reserves.

It should be noted that the government of the Republic of Tajikistan periodically forgives or defers tax debts of enterprises in which it holds shares through various schemes. For example, just recently, tax arrears amounting to $18.5 million were forgiven for OJSC “Tajiktransgaz,” of which the government is the sole shareholder. Additionally, debts of OJSC “Barki Tojik,” fully owned by the government, are also periodically forgiven, as well as debts of enterprises owned by government agencies, such as OJSC “Tajiktelecom.”