Azerbaijan, Baku, 14 November / Trend , corr. I.Alizade/"Tax privileges for agricultural producers in Azerbaijan will be prolonged for five years term," Ziyad Samadzade, the chairman of the parliamentary commission on economy policy, said at the plenary session of the Parliament.
According to Samadzade, the exemption of agricultural producers from tax paying, excluding land, will allow to improve their material welfare.
The privileges will be applied since 1 January 2009, due to expire of the terms of the law on 27 January 2001. The law also envisages tax vacation for juridical entities and individuals occupied in the agricultural sphere.
These measures are part of efforts that are taken by Azerbaijan within the state food security program that is the most pressing issue. Peoples occupied in the factory-farm complex will be assisted under the presidential decree on 27 January 2007. Producers are provided with subsidies to cover 50% of the value of fertilizers fuels and lubricants. Some AZN 40 is allocated to subsidize grain production per hectare. This process will also be continued in the next year.
Owing to the measures the development of the agricultural housing accelerated in Azerbaijan and the growth rate within nine months touched 8.7%.
At present, 99% of agricultural products are achieved by private sector. The land reforms have practically completed in Azerbaijan and 1,390 hectares of lands were distributed amongst rural residents.
The Azerbaijani Government considers unnecessary to cancel tax privileges in the current development of the agrarian sector in the next ten years.
Parliamentarians also consider relevant to prolong tax vacation for agricultural producers.
On 14 November, the official currency rate is 0.8093 AZN/USD.
The correspondent can be contacted at: [email protected]