Azerbaijan to Prolong Tax Privileges for Some Producers

Business Materials 7 November 2008 16:41 (UTC +04:00)

Azerbaijan, Baku, 7 November / Trend , corr. I.Khalilova /The Azerbaijani Government offers to prolong tax privileges for agriculture producers for more six years term. The aim of the prolongation is to stimulate the production rate, Samir Sharifov, the Finance Minister, said at the joint meeting of the parliamentary commission dedicated to the discussions of the state budget - 2009.

"Exemption of agricultural producers from tax paying excluding land tax will enable to improve their material welfare," Sharifov said.

The privileges will be valid on 1 January 2009 due to expire of the Law term dating 27 January 2001, which envisaged the use of tax vacation for juridical entities and individuals occupied in the agriculture sphere.

These efforts are part of measures taken by Azerbaijan within the state food security program, that is the most pressing issue today, the minister said.Under the President's order dated 27 January 2007an assistance will be rendered to factory-farm entrepreneurs. Subsidies will be allocated to cover 50 percentages of the costs of mineral fertilizers, oil and lubricants. AZN 40 is allocated to subsidy the production of grain per hectare. The issue will be considered in 2009.

The grain production totaled 1.7mln tons in the result of the measures taken in 2007. The agrarian sector of Azerbaijan is developing rapidly as for nine months of 2008 of 8.7%.

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