Losses from excise reduction on Azerbaijani oil products to be compensated

Photo: Losses from excise reduction on Azerbaijani oil products to be compensated  / Oil&Gas

Baku, Azerbaijan, Feb. 13

Trend - Emil Aliyev

The decision to reduce excise tax rate for oil products produced in Azerbaijan which was made by the Cabinet of Ministers on Feb.6, 2014, will not affect the implementation of the forecast on tax revenues to the state budget, deputy to the Azerbaijani Minister of Taxes, Sakhir Mammadkhanov said at a press conference dedicated to the results of the department's activity in 2013.

"Undoubtedly, the reduction of excise tax rate will affect revenues on this type of collection, but in general it will not affect the implementation of tax obligations where losses in this segment will be compensated at the expense of other spheres, such as at the expense of increasing collections connected with the previous growth of oil import products," Mammadkhanov said.

According to Mammadkhanov, the forecasts and the minimum threshold for tax revenue are determined regularly.

Budget deductions for SOCAR (the State Oil Company of Azerbaijan) for 2014 will be determined at 1. 825 billion manats, while the forecast on revenue to the state budget for the ministry is 7.102 billion manats. SOCAR assured us that it will fulfil all the obligations," the deputy of the minister said.

According to the decision of the Cabinet of Ministers, the excise tax rate for motor spirit-95 has been reduced 2.5 times, for motor spirit-92 and 80 it has been doubly reduced , diesel fuel- 3.2 times, jet engine fuel -7.6 times, naphtha- 5.4 times, for liquefied gas - three times, engine fuel(DT-36)- seven times, engine fuel(DT-20)- 5.2 times, furnace oil- 49 times and bitumen (BN-60/90, BNB-60/70)-16.4 times.

Oil products

Excise tax rate in % (since January 1, 2014)

Excise tax rate in % (till January 1, 2014)

1.

motor spirit -95

64.0

159

2.

motor spirit -92

65.0

134

3.

motor spirit -80

66.0

134

4.

diesel fuel

18.0

57

5.

Jet engine fuel

9.0

68

6.

naphtha

13.0

70

7.

liquefied gas

22.0

69

8.

engine fuel (DT-36)

24.0

170

9.

engine fuel (DT-20)

31.0

160

10.

furnace oil

3.0

147

11.

bitumen ( BN-60/90, BNB-60/70)

11.0

180

12.

bitumen (MQO)

34.00

34.00

13.

bitumen (BNV, BNB- 70/30, BNB-85/25)

31.00

31.00

14.

petroleum

(KO-20)

32.00

32.00

15.

natural gasoline

37.00

37.00

16.

Engine Oil (M-12VB, M-14V2)

52.00

52.00

17.

industrial oils (İ-12A, İ-20V, İ-40A, İ-8B1, İ-30V)

72.00

72.00

18.

Turbine fuel (T-22, T-30, T-46)

39.00

39.00

19.

transformer oil (T-1500)

54.00

54.00

20.

Other oils (AK-15, S-11, XM-6, K-12, K-19, VM-4)

56.00

56.00

21.

chark

(KT-A)

19.00

19.00

22.

chark (KT-T)

19.00

19.00

23.

chark (KT-Q)

18.00

18.00

The official exchange rate on Feb. 13 is 0, 7844 AZN/USD.

Translated by R.A.

Edited by S.M.

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