BAKU, Azerbaijan, Nov. 25
By Elchin Mehdiyev – Trend:
Amendments to the Tax Code related to agriculture in Azerbaijan will create a basis for lowering prices for agricultural products produced in the country, Trend reports.
According to the information, one of the next proposed changes to the Tax Code to reduce the tax burden of entities and stimulate entrepreneurship activities are changes aimed at reducing cost elements affecting the cost of agricultural products, and thus creating an economic basis for reducing prices in the domestic market.
Thus, it is proposed to impose VAT from January 1, 2022 only on the trade surcharge for the wholesale and retail sale of agricultural products for three years, as well as to exempt from VAT the provision of agricultural machinery in operational leasing and agricultural services related to the production of agricultural products.
The first change in this direction is the charging of VAT along the entire sales chain of agricultural products on the applied trade value added, and not on the full value of these products. Since, in the current situation, agricultural products purchased from the manufacturer were purchased under a VAT-exempt transaction, the subsequent sale of these products was subject to VAT at a rate of 18 present.
As a result of the proposed change, a basis will be created for lowering prices for agricultural products produced in the country, since VAT will be charged on the commercial value added of these goods.
The second change in this direction is the exemption from VAT of the elements of the costs of VAT on the production of agricultural products (exemption from VAT of agricultural services provided to agricultural producers and the provision of lease (leasing) of agricultural machinery to them) will lead to a decrease in the cost of agricultural products, which will affect prices.
It is noted that the amendments were put to a vote at a meeting of the Milli Mejlis (parliament) and adopted in the second reading.