The Taxes Ministry of Azerbaijan is working on a Regulation to regulate the property in accordance with the market prices, the Head of the State Real Estate Registry Service Arif Garashov said on October 31 during the meeting with the municipalities. He said that the relevant task was charged in the meeting of the Cabinet of Ministers of Azerbaijan dedicated to the results of the economic life of the country over 6 months. According to him, the new rules of appointing the cost of the property will allow differentiating the tax payments depending on properties of high and poor layers of the population.
At present, the property tax is paid in size of 0,01% from the inventory cost of the property. In addition, the properties with the cost of up to AZN 6,000 are released from the taxation. According to Garashov, it is an unfair division, and therefore it should be corrected.
As long as the property tax from the physical persons is one of the income sources of the municipalities, they will consider the inaccurate assessment system as one of the key problems. In result, at the time of the high cost of the property, they receive scanty incomes from the tax property. Particularly the Head of Narimanov Municipality raised this problem because this district differs with its expensive properties of up to $1 mln.