BAKU, Azerbaijan, Feb. 7
Trend:
The future of the Azerbaijani economy depends on the development of entrepreneurship, Azerbaijani President Ilham Aliyev said in his closing speech at the conference dedicated to the results of first year implementation of "The State Program on socio-economic development of the regions of the Republic of Azerbaijan in 2019-2023",Trend reports.
“The state has envisaged sufficiently large funds for the development of entrepreneurship this year,” Ilham Aliyev said. “This is already happening at the expense of repaid loans. About 200 million manats of loans will be provided on preferential terms. I can say that more than 2 billion manats in loans were provided to entrepreneurs on preferential terms in recent years. However, it is necessary to tighten control over these loans, as well as review business projects, because analysis shows that quite a lot of money is spent to create each job. In previous years, preference was mainly given to large projects, which was natural because I think that the creation of these agricultural estates and other large industrial enterprises was necessary.”
“But today, in the portfolio of preferential loans, preference should be given to small and medium-sized enterprises,” the Azerbaijani president noted. “We are well aware that the gross domestic product in developed countries is largely formed by small and medium-sized enterprises. We should follow this path as well, especially when we consider that the oil and gas industry is leading driver of our economy. Therefore, preference in low-interest business loans should be given to small and medium-sized enterprises this year.”
“As for the implementation of large projects, as I have already noted, agricultural estates occupy a special place among them,” added Ilham Aliyev. “The creation of agricultural estates is associated with food security. Today, in the example of agricultural estates, we see that productivity is higher because new technologies are applied, equipment is imported, state support is provided. For example, last year the average yield in grain production was quite high –32 quintals per hectare. This is huge progress. But in large farms it is 50 quintals, in some places 60 quintals. This suggests that the creation of agricultural estates was a very right decision. However, I am told that the creation of agricultural estates is being delayed in some places or work is not going on there at all.”
“Therefore, I am asking the Ministry of Economy and the Ministry of Agriculture to deal with this issue,” said the Azerbaijani president. “The plan was to create more than 50 agricultural estates. Let them sort it out, analyze and let me know if these places were simply taken over by entrepreneurs and are not being used. If so, they should be returned and transferred to a working entrepreneur.”
“Entrepreneurs are provided with a great deal of comprehensive support,” Ilham Aliyev noted. “First, the support of the President. I have repeatedly said that the future of the Azerbaijani economy depends on the development of entrepreneurship. On the other hand, all infrastructure projects have been implemented. Just imagine that if there were no light or roads in the districts, what entrepreneur would ever work there? If there were no gas, what greenhouse would operate? Therefore, all of this has been done by the state – roads, electricity, gas, water. In addition, low-interest loans – as I have said, more than 2 billion manats were allocated at low interest rates. Subsidies are provided to farmers, they are exempt from taxes with the exception of land tax, which is insignificant.”
“The creation of industrial estates, industrial parks and infrastructure by the state,” said the Azerbaijani president. “An incentive mechanism has been put in place and other stimulating factors have been applied. So great opportunities have been created for entrepreneurs. Therefore, we require entrepreneurs to be conscientious, work honestly, not commit violations and not evade taxes. Let them pay taxes in full. Besides taxes, they shouldn’t pay a single manat to anyone, no agency, no-one. After all, bribery has two sides: the taker and the giver.”
“I want to tell potential bribe givers: stop it! If someone groundlessly requires something from you, immediately inform the Presidential Administration, the Cabinet of Ministers and central executive authorities,” Ilham Aliyev added. “This is completely unacceptable because quite often it is bureaucratic arbitrariness that inhibits the development of entrepreneurship. Seeing that work is about to start somewhere, officials sometimes immediately rush there, demand their share or try to snatch something. This must be stopped. Therefore, entrepreneurs must fully pay taxes. Because their taxes mean the life of our country, our people. Of course, the reforms carried out by tax authorities also provide great assistance to entrepreneurs because entrepreneurs know what the rules are. And they are very simple.”
“It is necessary to build your work in accordance with law, conclude labor contracts and not exploit workers,” said the Azerbaijani president. “I am told that workers are sometimes forced to work above the prescribed time. We have an eight-hour working day. No-one should work more than that. But in order to save more money, they are forced to work for 10, 12 or more hours. This must end and the Cabinet of Ministers must exercise control over that. It is necessary to hold a special meeting to discuss these issues. If such facts are committed, the entrepreneurs will be punished. I urge employees not to work without an employment contract. I know that sometimes you are forced to do so. But you should also know that without an employment contract you will not be able to receive a pension and medical insurance tomorrow.”
“Therefore, entrepreneurs must pay tax, comply with all legal requirements and be responsible,” noted Ilham Aliyev. “Well-to-do entrepreneurs must be aware of their social responsibility, of course. At the same time, they should not commit unreasonable staff cuts because each redundancy leaves a whole family without a livelihood. This cannot be done. Please note that the state is increasing the number of recipients of targeted social assistance. Despite the fact that poverty is at 4.8 percent, poor people in Azerbaijan do not wander around the streets, as in some cities. Look at the cities of developed countries. There are thousands of homeless people living in the capitals of the largest countries. They sleep either in boxes, on benches or in make-shift tents they set up for themselves. We see it on TV. Do we have this too? No! Why? Because the state takes care of its citizens.”
“Although the number of unemployed and poor people in Azerbaijan is getting smaller, I have instructed to increase the number of recipients of targeted social assistance,” the Azerbaijani president said. “To do this, new criteria must be applied so that there are no poor people in our country. If an entrepreneur wants to earn 5 manats more, he fires a person. This is unacceptable. If there are such facts, do let me know and we will talk to these entrepreneurs the way they deserve. Therefore, there should be responsibility to the state, people and law. This includes the fight against the shadow economy which will continue to be carried out. There are also two sides to it. A government official turning a blind eye to it and an entrepreneur doing it. This conspiracy must be completely destroyed, and it is being destroyed.”
“Today, the state does not turn a blind eye to this,” added Ilham Aliyev. “Entrepreneur must fully withdraw their businesses from the shadows. The state, our central executive bodies, demonstrating a special understanding, are gradually implementing this process, because those who do this have worked this way for decades, both in Soviet times and in the period of independence, and are used to it. This must be stopped. There should be no shadow economy – that’s all, it is very simple. True, it exists everywhere, in every country. Here it has reached an unacceptable level. To be honest, when I was presented with this analysis, I was horrified. So this is being stopped.”
“How did tax and customs authorities collect more than 1 billion manats over the forecast last year? Previously, this money disappeared in someone’s pockets and the people of Azerbaijan were deprived of it,” said the Azerbaijani president. “Having ensured this transparency, we were able to implement the social initiative I mentioned. Every single gapik of this money was spent on salaries, pensions, scholarships and benefits. This being the case, can we turn a blind eye to the shadow economy? Absolutely not! I repeat that the shadow economy must end and state bodies have established a transition period because it would be wrong to take extremely tough measures immediately. People need to get used to it gradually. But we cannot drag out this period of concessions indefinitely. Therefore, the entire economy should come out of the shadows and all entrepreneurs must pay taxes this year.”
“If someone still tries to work according to the old rules or rely on someone after my words, let them know this: this will not work,” Ilham Aliyev noted. “There will be no concessions for anyone. Everyone should know this. Everyone is equal. There is not a single untouchable entrepreneur, not a single untouchable official. Everyone will receive their own assessment, reward and punishment for their deeds. You must know this.”
“I should also note that this positive process continues this year too,” the Azerbaijani president added. “I haven’t been updated on the social and economic results of January yet. It takes some time. However, several figures have already been reported to me, including those related to the activities of tax and customs authorities in January. In particular, in January of this year, tax authorities collected 120 million manats and customs authorities 40 million manats in excess of the forecast. In other words, thanks to the fight against the shadow economy, 160 million manats were received in one month alone.”