Potential air pollutant has been exempted from paying income tax and investor has been exempted from paying VAT and customs duties on equipment and building materials being imported into the country for construction of a new cement plant.

Tajikistan’s lower house (Majlisi Namoyandagon) of parliament has endorsed an agreement concluded between the Government of Tajikistan and Closed Joint-Stock Company (CJSC) Tojiksement (Tajik Cement) on construction of a new cement plant on the outskirts of the Tajik capital.

A regular sitting of the Majlisi Namoyandagon took place on October 1 and presenting the agreement to lawmakers, Farrukh Hamralizoda, the head of the State Committee on Investment and State-owned Property Management (GosKomInvest), noted that after being introduced into operation the plant will be exempted from paying income tax during five years and foreigners working with the enterprise will be exempted from paying social tax during the same period. 

According to him, investor is exempted from paying value added tax (VAT) and customs duties on equipment and building materials being imported into the country for construction of a new cement plant.  

A total cost of the project, including construction and equipping of the plant as well construction of enterprises manufacturing building concrete materials and sacks, will be 1 billion somoni (equivalent to some 100 U.S. dollars).   

Speaking at the sitting, Tojiksement CEO Bakhtiyor Majidov said the plant is being constructed for the purpose of making worthy contribution to industrialization of the country’s economy.     

The enterprise will be constructed on the outskirts of the city in compliance with international standards and its operation will not harm the environment and public health, Tojiksement CEO added.  

Tajikistan now meets completely its requirements in cement.  Tajikistan has also begun exporting cement to neighboring countries.

In 2018, Tajikistan produced 3.8 million tons of cement and 37 percent (1.4 million tons) of cement produced in the country last year was exported to Uzbekistan, Kyrgyzstan and Afghanistan.   

Over the last five years, production of cement has increased in Tajikistan nearly ten times due to Chinese investors.     

Tajikistan now has 18 cement plants with a total production capacity of 5.0Mt/yr.    

Tajikistan has increased production of cement significantly in recent years due to launching new Tajik-Chinese joint ventures. 

Tajik-Chinese joint ventures Chzhungtsai Mohir Cement, Huaxin Gayur Cement, and Huaxin Gayur Sughd Cement reportedly accounted for nearly 85 of the local production last year.   

Besides, a new cement plant with annual capacity of 600,000 tons is currently being constructed in Balkhi district, Khatlon province.   

It is also planned to build a large cement plant in Vanj district of the Gorno Badakhshan Autonomous Region (GBAO).    

Meanwhile, such achievements of Tajikistan’s industry evoke concern of ecologists, who consider that excessive increase in cement production may cause irreparable harm to the country’s environment.

According to them, more polluting plants in China are forced to shut down or pay the costs of environmental damage in the wake of new laws and a crackdown on pollution.  Cement is one of the world’s most polluting industries, and therefore, Chinese producers have moved excess capacity offshore.  The Chinese cement plants mainly use coal for their fuel.  The companies reportedly claim that their plants are using advanced environmental and energy saving technology, without specifying exact standards.