BAKU, Azerbaijan, Apr. 5
Trend:
The Azerbaijani Cabinet of Ministers has clarified the issue in connection with resolutions # 87 and 88, the Azerbaijani Cabinet of Ministers told Trend.
A law changing the Azerbaijani Tax Code was adopted on February 23, 2021. The changes envisaged the extension of the terms of exemption from VAT (Article 164), exemption from the excise rate (188) and the change in the list of excisable goods and excise rates.
In accordance with the amendment to Article 164 of the Code, on the basis of a confirmation document issued by the relevant structure, the import of machinery, equipment and devices for the production and processing of jewelry made of gold and silver, as well as the sale of gold and silver in the form of bars, coins and granules has been exempt from VAT since January 1, 2021.
Platinum, gold, jewelry and other platinum, golden items, processed, packaged, framed and hardened diamonds were exempted from excise duty for a period of three years since January 1, 2021 upon an amendment to Article 188 of the Tax Code.
After making the amendments to Article 190 of the Tax Code, the list of excisable goods was expanded and the rates of excise taxes on various tobacco products, except for production ones, were increased.
Proceeding from these changes, there was the need to amend the resolutions of the Cabinet of Ministers.
These changed were observed in the resolutions of the Cabinet of Ministers "On Amendments to the Decision" On Approval of Excise Rates for Goods Imported to the Territory of the Republic of Azerbaijan and subject to excise" of the Cabinet of Ministers #20 dated January 19, 2001" and "On amendments to the "Commodity nomenclature of foreign economic activity of the Republic of Azerbaijan, rates of import customs duties and rates of export customs duties" approved upon the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan #500 dated November 17, 2017.
As excise taxes are of economic nature, on the one hand, they are used to retain a part of the additional profit from the production of highly productive products in the state budget, on the other hand, to limit the consumption of socially harmful goods.
Thus, an increase in the excise tax on tobacco products, which is a major risk factor for non-communicable diseases, shortening life expectancy and reducing the quality of life, was considered appropriate.