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IMF recommends Azerbaijan to remove obstacles in collection of taxes

Business Materials 22 January 2009 17:48 (UTC +04:00)

Azerbaijan, Baku, Jan. 22 / Trend , I.Khalilova /

The International Monetary Fund (IFC) is ready to assist Azerbaijan to upgrade the tax policy, Fund's senior specialist on state sector management Munaver Khvacha said at the meeting in the Azerbaijani Tax Ministry.

Khvacha appreciated the tax system in Azerbaijan and paid a specific attention on the country's modern tax administration.

"The obstacles in collection of taxes must be removed. Special efforts must be taken to eliminate income tax evasion facts.

Khvacha proposed the Tax Ministry to upgrade work on invoices.

Deputy Tax Minister Natik Amirov informed the IMF mission on a number of activities to reduce risks for the implementation of budgetary revenues. He also stressed that the advantage of income generation will be given in collection of public revenues. According to him, in 2008, tax authorities exceed projected orders.

According to the Ministry forecast for 2008 was executed at 106.4 percent. This means that 5.75 billion manat was implemented compared to the forecast of 5.4 billion manats. Last year, income taxes of individuals did not meet targets only. 637.8 million manats collected on income tax. The figure by 20.2 percent lower than projected.

IMF experts have participated actively in the process of reforming the tax system over the past seven or eight years, and in the process took into account their recommendations. A connection was set up with all branches of the Ministry through an automated tax information system. Since 2007, the application of the country's system of electronic declaration, and for a short time, the majority of taxpayers, including 90 percent VAT payers, have started to file in electronic format.

Currently the Tax Ministry is working out a state program to bring the tax laws to the norms of the European Union in 2009-2012. IMF experts also help in improving the draft program and its successful implementation.

On Jan. 22 the official exchange rate is 08044 manat to $1.

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