Azerbaijan, Baku / corr . Trend I.Khalilova / The World Bank recommended Azerbaijan develop a value added tax equivalent for specific customs for simplifying calculation of average sustained customs duty in the country, the Azerbaijani government said. Presently, specific customs rates are applied on definite products, such as alcoholic drinks, tobacco and automobiles.
As value added tax customs rates are applied on the rest of goods imported to Azerbaijan, it is necessary to show the specific products. However, this issue has remained unsolved for many years.
Presently, special customs duties (calculated depending on number of products) have been fully liquidated at the recommendation of the International Monetary Fund (ICF) and they were substituted by value added tax (tax applied depending on the cost of the product). This system justified itself before, because it's major goal was to fulfill the public budget.
The work of customs bodies is assessed only per one quality in Azerbaijan, which envisages fulfillment of forecast assignments on public budget. Taking into consideration the current of affairs, the customs bodies make a major accent on the fulfillment of fiscal functions rather stimulating or regulating. Every year the forecasts set for the State Customs Committee for budget assignments grow and in 2008 it is project ed in the amount of AZN 1.1bln with an increase of 42.0% or AZN 330mln as compared to 2007. In 2005 the State Customs Committee provided collection of customs duties and taxes in the amount of AZN 516mln.