Azerbaijan reviews proposals to minimize global crisis influence on business

Business Materials 11 February 2009 16:41 (UTC +04:00)

Azerbaijan, Baku, Feb. 11 / Trend , U.Ismayilova/

The National Confederation of Entrepreneurs of Azerbaijan (NCEA) developed and submitted proposals to the Government to minimize the impact of global economic crisis on the business in the country, said Confederation president Alakbar Mammadov.

"Currently, the ministries of taxes and economic development, State Fund for Social Protection of Population, as well as other departments review the proposals," Mammadov said.

The Confederation proposes to increase loan resources from the National Fund for Entrepreneurship Support up to one billion manat in 2009, as well as to reconsider the allocation of loans.

The Confederation's proposal also includes a deferral of payments from the National Fund until the end of the world crisis, and even grants loans for crafts sector was proposed.

The Confederation also proposes to reduce payroll taxes from the current 25 percent (22 percent paid by employer from the salary fund and three percent - by employee) to 17 per cent.

Presently, the medium and small businesses involved into simplified tax system and the minimum amount of turnover for the last quarter was 2,500 manat. According to Mammadov, it is a very small figure, and the business activity is necessary to increase by 10-15 times.

The NCEA proposes to revitalize local entrepreneurs to carry out state procurements. The cost of energy resources must be lowered by 50 percent in order to reduce the cost of local produced goods. This will allow to develop the agrarian sector in the country.

On Feb. 11 the official exchange rate is 0.807 manat to $1.

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