Shipbuilding companies in Azerbaijan's industrial park to get benefits
It was proposed to exempt resident companies of Garadagh Industrial Park, who are engaged in shipbuilding in Azerbaijan, from the value added tax (VAT), customs duties, as well as contributions on compulsory state social insurance to five years, according to the amendments to the country's Tax Code, as well as the laws 'On Social Insurance' and 'On Customs Tariff'.
These amendments were discussed at a meeting of the Azerbaijan's Parliamentary Committee on Economic Policy, Enterprise and Industry.
Thus, according to the amendments, it is proposed to exempt import of any goods used by resident companies of the park during shipbuilding from VAT and customs duties for five years since May 1, 2016.
In addition, it is suggested to apply a zero rate of VAT with respect to contractors during the sale of goods used in shipbuilding to the resident companies which carry out various work and provision of services for them, as well as with respect to sub-contractors who sell the goods to contractors, carry out different types of work or provide services for them.
It is also proposed to exempt foreigners, contractors and sub-contractors hired by the resident companies of Garadagh Industrial Park to work in shipbuilding sphere, from compulsory contributions on state social insurance.
"Baku Shipyard Factory" LLC received the status of the first resident company of Garadagh Industrial Park in 2015.
Italy to invest in Azerbaijan
Italian companies are very interested in investing in Azerbaijan, says Giovanni Bella, vice president of the Italy-Azerbaijan Chamber of Commerce, created by the former Italian Ambassador to Azerbaijan Margarita Costa, and head of the Bella Giovanni Shipping & Trading SRL.
Bella said the Italian companies that show interest to work in the Azerbaijani market are engaged in such spheres as logistics, alternative energy, hardware, ecology, jewelry, construction, agriculture and agricultural complex, certification and food industry.
He believes that this interest of the Italian companies is a result of the visit paid by an Italian business delegation to Azerbaijan last week.
"Representatives of 20 companies held meetings at the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), where they met with the Azerbaijani Deputy Economy Minister Sevinj Hasanova, as well as at the State Agency on Alternative and Renewable Energy Sources, Tamiz Shahar JSC, and at the Ministry of Ecology and Natural Resources," said Bella.
Also, a number of meetings were held with various companies and good contacts have been established for future cooperation, he added.
Several more groups of the Italian businessmen will visit Azerbaijan in future to study the country's investment opportunities, according to Bella.
Meanwhile, work is underway to hold an art gallery at the Ferrari store during the 2016 Formula 1 Grand Prix of Europe in Baku, said Bella, adding that permissions have already been obtained from the embassies of Azerbaijan and Italy, as well as from Ferrari's head office.
"Azerbaijan has a very favorable investment climate and businessmen are convinced of this personally," Bella said further.
"The Bella Giovanni Shipping & Trading SRL, which is working with the Azerbaijani businessmen for 10 years already, has offered its services on execution of documents of Azerbaijan's state oil company SOCAR in Italy's territory," added Bella.
He also says that Azerbaijan can, in turn, offer Italy and other European countries its quality agriculture products.
"Azerbaijan can supply the Italian market with such products as pomegranates, nuts, and wood," he said. "For example, a glass of pomegranate juice in Italy costs five euros, it is an expensive product, and there are no such high-quality pomegranate sorts in the market as in Azerbaijan."
Meanwhile, Azerbaijan could supply nuts for a number of companies, as well as wood for the furniture makers, said Bella.
He added that the tourist trips to Azerbaijan for the purpose of hunting would also be interesting for Italians.
"Our main goal is to introduce Azerbaijan's products and opportunities in Italy at an appropriate level," noted Bella.
He added that Azerbaijan and Italy are to actively continue their joint work in the business sphere in the future.
Italy ranked first in the list of Azerbaijan's foreign trade partners in Q1 2016 with trade turnover of $462.44 million.