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Profit tax on ACG, Shah Deniz projects forecast to increase

Economy Materials 4 November 2022 11:41 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, November 4. As part of the production sharing agreements, the profit tax on the Azeri-Chirag-Gunashli (ACG) and Shah Deniz projects is forecast to reach a total of 3.676 billion manat ($2.162 billion) next year, Trend reports citing the draft law “On the state budget for 2023”.

According to the document, this figure is 26 percent, or 697 million manat ($410 million), higher than the previously updated forecast for the current year. At the same time, this figure has increased by 3.2 times, or by 2.322 billion manat ($1.365 billion), compared to 2021.

The lack of payments in the first quarter of 2022 as a result of unprofitable activities of contractors in the fourth quarter of 2021 is the reason for the increase in profit tax.

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