Doing Business 2016: Tajikistan Summary
Core Content Overview
Doing Business 2016 is a report by the World Bank that evaluates and compares the regulatory environment for small and medium-sized businesses across 189 economies. It measures regulatory quality and efficiency in 11 key areas of the business life cycle, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and labor market regulation. The report provides distance to frontier (DTF) scores and ease of doing business rankings to assess how close an economy is to the best regulatory practices globally.
Key Information for Tajikistan
Economy Profile
- Region: Europe & Central Asia
- Income Category: Lower middle income
- Population: 8,408,947
- GNI per capita (US$): 1,060
- DB2016 Rank: 132
- DB2015 Rank: 138 (adjusted for data revisions and methodological changes)
- Change in Rank: Improved by 6 positions
- DB2016 DTF Score: 54.19
- DB2015 DTF Score: 51.37
- Change in DTF: Increased by 2.82
Indicators and Performance
| Indicator |
Tajikistan DB2016 |
Tajikistan DB2015 |
Belarus DB2016 |
Kazakhstan DB2016 |
Kyrgyz Republic DB2016 |
Moldova DB2016 |
Russian Federation DB2016 |
Ukraine DB2016 |
Best Performer DB2016 |
| Starting a Business (Rank) |
57 |
81 |
12 |
21 |
35 |
26 |
41 |
30 |
New Zealand (1) |
| Starting a Business (DTF Score) |
90.26 |
85.76 |
96.32 |
94.44 |
92.94 |
94.17 |
92.35 |
93.88 |
New Zealand (99.96) |
| Procedures (number) |
4.0 |
4.0 |
3.0 |
4.0 |
4.0 |
4.0 |
4.4 |
4.0 |
5 Economies (7.00) |
| Time (days) |
11.0 |
28.0 |
3.0 |
5.0 |
10.0 |
4.0 |
10.5 |
7.0 |
3 Economies (1.00) |
| Cost (% of income per capita) |
21.5 |
23.3 |
0.9 |
0.1 |
2.1 |
4.3 |
1.1 |
0.6 |
Saudi Arabia (0.00) |
| Building quality control index (0-15) |
14.0 |
14.0 |
12.0 |
14.0 |
13.0 |
10.5 |
14.0 |
8.0 |
New Zealand (15.00) |
| Indicator |
Tajikistan DB2016 |
Tajikistan DB2015 |
Belarus DB2016 |
Kazakhstan DB2016 |
Kyrgyz Republic DB2016 |
Moldova DB2016 |
Russian Federation DB2016 |
Ukraine DB2016 |
Best Performer DB2016 |
| Dealing with Construction Permits (Rank) |
152 |
150 |
34 |
92 |
20 |
170 |
119 |
140 |
Singapore (1) |
| Dealing with Construction Permits (DTF Score) |
57.98 |
57.9 |
76.64 |
68.38 |
79.98 |
51.59 |
65.23 |
61.36 |
Singapore (92.97) |
| Procedures (number) |
27.0 |
27.0 |
16.0 |
24.0 |
11.0 |
27.0 |
19.0 |
10.0 |
14 Economies (3.00) |
| Time (days) |
242.0 |
242.0 |
115.0 |
154.0 |
142.0 |
113.0 |
160.5 |
263.0 |
Korea, Rep. (18.00) |
| Cost (% of warehouse value) |
2.2 |
2.3 |
0.8 |
1.4 |
1.9 |
0.7 |
93.1 |
795.3 |
Japan (0.00) |
| Reliability of supply and transparency of tariff index (0-8) |
0.0 |
0.0 |
7.0 |
6.0 |
0.0 |
6.0 |
8.0 |
5.0 |
18 Economies (8.00) |
| Indicator |
Tajikistan DB2016 |
Tajikistan DB2015 |
Belarus DB2016 |
Kazakhstan DB2016 |
Kyrgyz Republic DB2016 |
Moldova DB2016 |
Russian Federation DB2016 |
Ukraine DB2016 |
Best Performer DB2016 |
| Getting Credit (Rank) |
109 |
118 |
109 |
70 |
28 |
28 |
42 |
19 |
New Zealand (1) |
| Getting Credit (DTF Score) |
40 |
35 |
40 |
55 |
70 |
70 |
65 |
75 |
New Zealand (100) |
| Strength of legal rights index (0-12) |
1.0 |
1.0 |
2.0 |
4.0 |
8.0 |
8.0 |
6.0 |
8.0 |
3 Economies (12.00) |
| Depth of credit information index (0-8) |
7.0 |
6.0 |
6.0 |
7.0 |
6.0 |
6.0 |
7.0 |
7.0 |
26 Economies (8.00) |
| Credit registry coverage (% of adults) |
0.0 |
0.0 |
66.9 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Portugal (100.00) |
| Credit bureau coverage (% of adults) |
15.9 |
7.0 |
0.0 |
81.4 |
35.3 |
10.8 |
70.2 |
36.7 |
22 Economies (100.00) |
| Indicator |
Tajikistan DB2016 |
Tajikistan DB2015 |
Belarus DB2016 |
Kazakhstan DB2016 |
Kyrgyz Republic DB2016 |
Moldova DB2016 |
Russian Federation DB2016 |
Ukraine DB2016 |
Best Performer DB2016 |
| Paying Taxes (Rank) |
172 |
178 |
63 |
18 |
138 |
78 |
47 |
107 |
United Arab Emirates (1) |
| Paying Taxes (DTF Score) |
43.53 |
38.83 |
78.74 |
89.18 |
62.94 |
76.28 |
81.6 |
70.69 |
United Arab Emirates (99.44) |
| Payments (number per year) |
28.0 |
36.0 |
7.0 |
7.0 |
51.0 |
21.0 |
7.0 |
5.0 |
China (3.00) |
| Time (hours per year) |
276.0 |
281.0 |
176.0 |
188.0 |
225.0 |
186.0 |
168.0 |
350.0 |
Luxembourg (55.00) |
| Total tax rate (% of profit) |
81.8 |
81.8 |
51.8 |
29.2 |
29.0 |
40.2 |
47.0 |
52.2 |
Ireland (25.90) |
| Indicator |
Tajikistan DB2016 |
Tajikistan DB2015 |
Belarus DB2016 |
Kazakhstan DB2016 |
Kyrgyz Republic DB2016 |
Moldova DB2016 |
Russian Federation DB2016 |
Ukraine DB2016 |
Best Performer DB2016 |
| Trading Across Borders (Rank) |
132 |
159 |
25 |
122 |
83 |
33 |
170 |
109 |
Denmark (1) |
| Trading Across Borders (DTF Score) |
57.05 |
43.59 |
94.88 |
60.39 |
72.25 |
92.39 |
37.39 |
63.72 |
Denmark (100) |
| Time to export: Border compliance (hours) |
75 |
144 |
5 |
133 |
27 |
3 |
96 |
26 |
15 Economies (0.00) |
| Cost to export: Border compliance (USD) |
313 |
313 |
148 |
574 |
485 |
76 |
1,125 |
75 |
18 Economies (0.00) |
| Time to export: Documentary compliance (hours) |
66 |
135 |
4 |
132 |
24 |
48 |
43 |
96 |
Jordan (0.00) |
| Cost to export: Documentary compliance (USD) |
330 |
330 |
87 |
430 |
190 |
44 |
500 |
292 |
20 Economies (0.00) |
| Time to import: Border compliance (hours) |
108 |
177 |
1 |
2 |
37 |
3 |
96 |
52 |
19 Economies (0.00) |
| Cost to import: Border compliance (USD) |
223 |
223 |
0 |
0 |
512 |
83 |
1,125 |
100 |
28 Economies (0.00) |
| Time to import: Documentary compliance (hours) |
126 |
123 |
4 |
6 |
36 |
2 |
43 |
168 |
21 Economies (1.00) |
| Cost to import: Documentary compliance (USD) |
260 |
260 |
0 |
0 |
200 |
41 |
500 |
292 |
30 Economies (0.00) |
| Indicator |
Tajikistan DB2016 |
Tajikistan DB2015 |
Belarus DB2016 |
Kazakhstan DB2016 |
Kyrgyz Republic DB2016 |
Moldova DB2016 |
Russian Federation DB2016 |
Ukraine DB2016 |
Best Performer DB2016 |
| Enforcing Contracts (Rank) |
54 |
54 |
29 |
9 |
137 |
67 |
5 |
98 |
Singapore (1) |
| Enforcing Contracts (DTF Score) |
63.49 |
63.49 |
70.36 |
76.62 |
49.49 |
60.87 |
78.56 |
57.11 |
Singapore (84.91) |
| Time (days) |
430.0 |
430.0 |
275.0 |
370.0 |
410.0 |
585.0 |
307.0 |
378.0 |
Singapore (150.00) |
| Cost (% of claim) |
25.5 |
25.5 |
23.4 |
22.0 |
47.0 |
28.6 |
16.5 |
46.3 |
Iceland (9.00) |
| Quality of judicial processes index (0-18) |
8.0 |
8.0 |
9.0 |
13.5 |
4.5 |
9.5 |
12.5 |
8.0 |
3 Economies (15.50) |
| Resolving Insolvency (Rank) |
147 |
147 |
69 |
47 |
126 |
60 |
51 |
141 |
Finland (1) |
| Resolving Insolvency (DTF Score) |
29.04 |
29.26 |
48.38 |
58.97 |
34.66 |
53.85 |
58.39 |
31.05 |
Finland (93.81) |
| Recovery rate (cents on the dollar) |
36.5 |
36.9 |
37.6 |
42.8 |
38.3 |
30.4 |
41.7 |
8.3 |
Japan (92.90) |
| Time (years) |
1.7 |
1.7 |
3.0 |
1.5 |
1.5 |
2.8 |
2.0 |
2.9 |
Ireland (0.40) |
| Cost (% of estate) |
9.0 |
9.0 |
22.0 |
15.0 |
15.0 |
15.0 |
9.0 |
42.0 |
Norway (1.00) |
| Outcome (0 as piecemeal sale and 1 as going concern) |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
- |
| Strength of insolvency framework index (0-16) |
3.0 |
3.0 |
9.0 |
11.5 |
4.5 |
12.0 |
11.5 |
8.5 |
4 Economies (15.00) |
Main Points and Key Insights
- Ease of Doing Business: Tajikistan ranks 132 out of 189 economies in the 2016 report, showing a slight improvement from its 2015 rank of 138.
- Distance to Frontier (DTF): Tajikistan’s DTF score is 54.19, indicating it is still far from the best regulatory practices.
- Starting a Business: Tajikistan has 4 procedures and takes 11 days to start a business, with a cost of 21.5% of income per capita. It ranks 57th and is far behind the best performer, New Zealand.
- Dealing with Construction Permits: Tajikistan ranks 152, with 27 procedures, 242 days, and a cost of 2.2% of warehouse value. The DTF score is 57.98.
- Getting Electricity: Tajikistan ranks 177, with 9 procedures, 133 days, and a cost of 878.9% of income per capita. The DTF score is 34.79.
- Registering Property: Tajikistan ranks 102, with 6 procedures, 37 days, and a cost of 3.4% of property value. The DTF score is 60.78.
- Getting Credit: Tajikistan ranks 109, with a DTF score of 40. The country has poor credit registry and bureau coverage.
- Protecting Minority Investors: Tajikistan ranks 29, with a DTF score of 65. The country has moderate levels of shareholder governance and conflict of interest regulation.
- Paying Taxes: Tajikistan ranks 172, with a DTF score of 43.53. It has a high tax burden, with a total tax rate of 81.8% of profit.
- Trading Across Borders: Tajikistan ranks 132, with a DTF score of 57.05. It has high costs and time for both exporting and importing.
- Enforcing Contracts: Tajikistan ranks 54, with a DTF score of 63.49. The quality of judicial processes is low, with a score of 8.0 out of 18.
- Resolving Insolvency: Tajikistan ranks 147, with a DTF score of 29.04. The recovery rate is 36.5 cents on the dollar, and the process takes 1.7 years.
Methodology Changes in Doing Business 2016
- New indicators: The report introduces new indicators for construction permits, electricity, and labor market regulation, including quality of regulation and implementation.
- Revisions: The methodology for trading across borders and protecting minority investors has been updated.
- Exclusions: Labor market regulation indicators are not included in the overall ease of doing business ranking but are presented in the economy profile.
- Comparisons: The report compares Tajikistan with other economies, including Belarus, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, and Ukraine, to highlight performance gaps.
Conclusion
Tajikistan's regulatory environment for businesses remains challenging, with significant room for improvement in areas such as starting a business, getting electricity, and resolving insolvency. While there have been some improvements in rankings and DTF scores, the country still lags behind many of its regional peers and global best performers. The report serves as a valuable tool for policymakers to identify regulatory bottlenecks and implement reforms to enhance the business climate.