The government has endorsed the list of basic food products that will be exempted from payment of the value added tax (VAT).  This decision is reportedly aimed at curbing basic food price spikes.

The government session, presided over by President Emomali Rahmon, on February 28 endorsed the list of basic food products delivered to the Tajik capital by the State Unitary Enterprise (SUE) for Production, Purchase and Sale of Basic Necessities in Dushanbe that will be exempted from payment of VAT.

In a statement delivered at the session, Dushanbe Mayor Rustam Emomali noted that the decision is aimed at curbing basic food price spikes.

Wheat, rice, vegetable oil and sugar were reportedly put on the list of VAT-exempt foods.

Meanwhile, a source in Dushanbe administration says it is not the first time that the government has exempted this enterprise from paying VAT.   

Last year, the country’s budget received 55.8 million somoni less due to exemption of the mentioned state unitary enterprise from payment of VAT, the source added.