ALCA works out bill 'Leasing'
Azerbaijan, Baku, June 5 / Trend U. Ismayilova /
The Azerbaijani Association of leasing companies (ALCA) has completed the draft law "Leasing," the head of the Azerbaijani association of leasing companies, Elchin Akhmadov, said.
"The draft law was developed with the support of experts of the Agency for International Development (USAID), International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD)," he said.
He said that experience of three countries was used in developing of the law.
"Today, the main task of the association is to transfer the project to the relevant state agencies to obtain feedback and some support," he said.
He said that the association also called on the abolition of value added tax (VAT) (leasing products are among those exempt from VAT, but when selling goods companies have to charge VAT at the rate of 18 percent). Another urgent issue for leasing companies is to return the mechanism of accelerated depreciation. Earlier there was an item in the Azerbaijani Tax Code that supports accelerated depreciation, but it was canceled. The Association intends to propose the restoration of the item. It will serve not only the development of the leasing market, but also other areas of the economy.
Akhmadov said that the ALCA also proposed a temporary exemption from taxation of the profits directed to the capitalization, as in the case of banking and insurance sectors of the economy. Banks and insurance companies have got tax exemptions for a period of three years since 2009.
Now, members of the Azerbaijani association of leasing companies are the companies - Ata Leasing, AG Leasing, Qafqaz Leasing, Goint Leasing, Uni Leasing, CredAgro, Banf of Baku, Demir Bank. The annual membership fee in ALCA is $ 2.200 manat. The association was established October 27, 2004 by Ata Leasing, Uni Leasing, Mugan Leasing.