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IMF STARTED CONSULTATIONS ON SOCAR TAXATION

Business Materials 17 August 2005 14:45 (UTC +04:00)

International Monetary Fund (IMF) resumed technical assistance in improvement of the tax system in Azerbaijan. The IMF technical mission headed by Tomas Dalfhaard is in Baku since

16 August, the IMF Baku office told Trend. "The mission, targeted at consulting the government of Azerbaijan on taxation the State Oil Company of Azerbaijan (SOCAR) will last till 26 August”, the IMF Baku office pointed out.

The mission members will attend SOCAR, the State Oil Fund (SOFAR), the Ministry of Economic Development, the Finance Ministry and the Ministry of Taxes. On the IMF proposal transition of the SOCAR taxation to the real charging method instead of the former practice of budget forecasting was made.

In the framework of the current mission discussions of the issue on lowering the economy indirect subsiding level from the part of SOCAR, liquidation of tax arrears, improvement of the financial discipline and the tax payment practice, particularly, royalty are to be held. SOCAR transferred some 3115,2 billion AZM to the state budget in 2004, but has debts of 1 trillion AZM for the previous year.

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