Azerbaijan, Ganja, May 15 / Trend , V. Mammadov/
Canceling exemption of import wheat from VAT, imposed in 2007 with a prolongation of a year, will not lead to a rise on wheat prices, Azerbaijani Agriculture Minister Ismat Abbasov said. The wheat import was exempted from the VAT in July 2007 which enables bread producers to buy wheat $50 cheaper in each ton.
"Prior to the canceling exemption of import grain from VAT, the country imported enough grain. Besides, there are reserves from last year's crop. This will prevent price rise," Abbasov said at the international conference "Problems of Training Specialists in the Field of Agriculture: Current Situation, International Experience and a New Model of Agricultural Education," held in Ganja.
He said as a result of increase in sown area of grain by 800,000 hectares in 2008 this year's grain harvest is expected to amount 2.160 million tons.
The Minister believes that the decision to cancel exemption of import of grain from the VAT would increase the domestic production.
"In the near future we can even export grains themselves," Abbasov said.
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