Azerbaijan, Baku, 30 April /corr. Trend L.Abdullayeva / The project of Azerbaijani Ministry of Finances and Ministry of Taxes on decrease of tax tariffs in 2009, which will be submitted to the Parliament until 15 May, can lead to decrease of prices in the country. In practice, it does not depend only upon the decrease of the tax duties, but also on the decrease of other loads. If the decrease will not take place, at least their growth will stop.
Decreasing the tax duties is not a fight against inflation. The key goal is to reduce load on the producers. Small business gains resources for its development. Decreasing the tax barriers always leads to the business development. It means new jobs, qualitative products and high salaries.
The Ministry of Finances already intends to present its variant of the project for the discussions by the end of this week. The Ministry of Finances and Ministry of Taxes intend to re-consider the profit tax and value added tax (VAT). According to the initial data, the profit tax is envisaged to be decreased from the current 22% to 20% and VAT - from 18% to 17%.
Examples of the European countries are also being considered. Currently, Eastern Europe suggests the profit tax two times lower than those in Western Europe, which is also trying to follow this tendency. Currently, most of countries that are willing to decrease tax load and give impulse to the economic growth, are trying to apply the unified tariffs on income tax and decrease profit tax. Works are also being carried out in Azerbaijan in this regard.
Reforming profit tax should take place along with the measures of support, i.e. decrease of VAT. VAT is a significant tax for the Public budget and it is difficult to remove it. It is one of the key taxes ensuring GDP and incomes of Public budget.
If the taxes will be efficient and the control will be general, incomes will increase significantly. It needs to ensure the permanent incomes to the budget within the available tax duties and inevitability of punishment for not-payment.
The correspondent can be contacted at: firstname.lastname@example.org