Alat FEZ to favor development of Azerbaijan's economy - board chairman (PHOTO)
BAKU, Azerbaijan, Aug.6
By Sadraddin Aghjayev - Trend:
The Alat Free Economic Zone (FEZ) will favor the development of Azerbaijan's economy, Chairman of the Board of FEZ Valeh Alasgarov said in an interview with Trend.
The territory of the FEZ in accordance with the general plan is 850 hectares, Alasgarov said.
“At the first stage, that is, until mid-2022, an area of 60 hectares will be commissioned. By this time, it will be equipped with the necessary infrastructure, and it will be ready to accept investors and companies for doing business,” he noted. “In accordance with the development strategy of the FEZ, we have already defined a plan according to which entrepreneurs and investors will carry out their activities there.”
“Moreover, within the framework of the general plan, it’s envisaged that we’ll build roads to the FEZ, water, gas, energy, optical and other necessary infrastructure without attracting investments," the official further said.
He also noted that in parallel with the first stage, work will be carried out within the second one.
"At the second stage, it’s planned to build a facility with an area of 10,000 square meters for office needs on this territory. The administration of the FEZ, its other structures, and members of the board will be located there,” Alasgarov said. “Besides, office premises will be provided to employees of the checkpoint of the State Customs Committee of Azerbaijan, who will carry out round-the-clock service.”
According to him, about half of the area of this facility will be leased to entrepreneurs and investors.
Additionally, entrepreneurs and investors will be exempted from all types of taxes and duties, the head of the board said.
According to him, the payments from which entrepreneurs will be exempted include taxes, including VAT and payroll tax, duties, customs duties.
"World practice shows that the exemption of entrepreneurs from such payments reduces the cost of production by 38-42 percent, which in turn will allow them to enter more markets with this product, create greater competition, and increase trade,” he noted. “From this point of view, it is beneficial for local and international manufacturers to conduct business in the FEZ.”
For the further development of the Alat FEZ, in accordance with the instructions of the Azerbaijani President Ilham Aliyev, an area of seven thousand hectares will be allocated, concluded Alasgarov.