Azerbaijan, Baku,
5 November /corr. Trend I.Khalilova / The Government of Azerbaijan plans to
prolong tax privileges for the agricultural producers of the country by five
years, the Ministry of Taxes said on 5 November.
In 2008 the period of moratorium on the payment of
taxes by agricultural producers, who were again exempted from the payment of
all taxes (with exception of land tax) for five more years, expires.
Under the conditions of the problem of
global food security, the government of the country intends to uphold tax
privileges for the agriculture. The innovations on the tax rates for the
agrarian and processing industry also are expected to be made from the next
year, the same source said.
"This will make it possible to ensure averagely 10-15% increase in the agrarian
sector of the country in the next years," the Ministry said.
At present 99 percent of the agricultural
production in the country fall on private sector. The agrarian reform was
completed in Azerbaijan, and 139,000 ha of land plots was presented to
villagers.
Government considers that the cancellation of tax privileges under the present
extensive development of the agrarian sector of the country is not urgent for Azerbaijan over the next 10 years.
With such rates of development, the budget
insignificantly loses from the nonpayment of taxes by the farmers.
In nine months of 2008 the growth rates in the agrarian sector were 8.3%. According to the forecasts of Government, this year the increase in the agrarian sector is expected at the level of 8%, 2009 - 9%, 2010 - 8.5%, 2011 and 2012- 8%.
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