BAKU, Azerbaijan, April 7
By Eldar Janashvili – Trend:
Azerbaijan is considering the possibility of applying an amnesty of capital and property to continue to ensure the economic growth and expand financial resources for investments, Vusal Gasimli, executive director of the Azerbaijani Center for Economic Reforms Analysis and Communication, told Trend on April 7.
“In fact, the amnesty of capital and property may be a logical continuation of the fight against the shadow economy,” executive director added. “In particular, the changes in the Tax Code today encourage entrepreneurs to 'bleach' their business by stimulating and administrative ways.”
"Today, investors say that this is a 'money masterpiece', as stock prices worldwide are falling, and this is a chance to legalize cash in the shadow sector,” Gasimli said. “In March 2020, owners of over 20,000 manat ($11,764) did not choose dollarization, having learned that the financial monitoring service will be declared.”
“The amnesty may also be attractive to the owners of such capital,” executive director said. “Of course, as a developing country, Azerbaijan also has factors that impede the amnesty of capital and property."
“Azerbaijan’s joining the transparency initiatives on an international scale is also favorable for the amnesty of capital and property,” Gasimli said. “Thus, the country is a member of the Egmont Group (Specialized Agency of Financial Intelligence Units), it participates in the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism – MONEYVAL and cooperates with the working group of the Organization for Economic Cooperation and Development dealing with the Financial Action Task Force (FATF) financial measures.”
“The legalization of capital as a result of amnesty may lead to an increase in investments in the country, the development of the securities market, the revitalization of the banking sector, the growth of cashless circulation, the growth of budget revenues and an increase in economic activity,” Gasimli said. “For this purpose, it is necessary to determine the form, conditions, duration, goals and scope of the amnesty and to ensure an environment of mutual trust.”
"An amnesty of capital and income must be carried out in such a way for the declared funds to be made in the form of investments,” the executive director added. “For example, the orientation of the declared capital to the construction is currently valid to create a greater multiplier effect. The declared funds may be sent to the real economy through banks, investment funds and institutes of market makers, investment companies and banks, stock exchanges, financial and technical companies, agricultural parks, industrial parks and others."