WB proposes Azerbaijan reviews tax revenue structure

Photo: WB proposes Azerbaijan reviews tax revenue structure / Business News

Baku, Azerbaijan, Feb.10

By Abbas Akhundov - Trend:

The World Bank (WB) has pointed out Azerbaijan's success in tax administration, particularly in the use of IT-technology, World Bank Country Manager for Azerbaijan Larisa Leshchenko said on Feb.7 at the third Tax Forum in Baku entitled 'Azerbaijani tax system: Realities and Prospects'.

Leshchenko believes this process makes a great contribution to the work of the Azerbaijani government on diversification of economy.

At the same time, there is a need to increase the skills of tax specialists, particularly in the sphere of transfer pricing regulation in which Azerbaijan is going to take serious steps, according to Leshchenko.

The WB country manager believes that Azerbaijan has something to think about in the sphere of provision of tax benefits and privileges.

"Additionally, today, Azerbaijan provides tax benefits for many sectors of the economy. On the one hand, it is very useful for companies' activities, particularly in terms of improving their financial condition. However on the other hand, the lack of benefits would facilitate the formation of the credit history of these companies and encourage them to seek new sources of funding," Leshchenko said.

Azerbaijan can also revise the structure of tax revenues and search for new sources of taxation, as well as optimise the existing ones, according to the WB country manager. Leshchenko also called on oil companies to join the Extractive Industries Transparency Initiative (EITI), which has proven its effectiveness.

The Tax Forum started its work in Baku on Feb.6.

Translated by L.Z.

Edited by S.M.

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