Imposing VAT by Azerbaijan on grain import affect cost for customers
Azerbaijan, Baku, Aug.5 / Trend, S.Suleymanov /
Imposing customs duties by Azerbaijan on imported grain affects its cost for customers, Food Contract Corporation managing director on commercial issues Daulet Uvashev said today.
"Imposing customs duties by Azerbaijan on imported grain affects its cost for customers - Azerbaijani private companies," Uvashev said.
He recalled that since early 2010, Azerbaijan introduced a new rule: if the cost of one ton of grain is $480 then VAT at the rate of 18 percent will be imposed, that is $86.4 per ton of imported grain.
"Similar customs duties on imported grain were also imposed by Iran in May 2010, as a result of what our grain supplies to this country declined," he said.
Uvashev said Iran doesn't impose such customs duties for the first time.
"Removing the taxes on imported grain in Iran will depend on the future domestic harvest in this country. But regarding Azerbaijan, the situation is unpredictable," Uvashev said.
He said the current rise in world grain prices may not and doesn't affect Azerbaijan's decision to remove customs duty on grain import.
"In Azerbaijan, collection of VAT at the rate of 18 percent is conducted at $480 per ton of grain, but world prices are still far from this level. But if they reaches mark in $600 per tons, then removal of customs duty in this country is possible," he said.
Earlier it was reported, the price of one ton of grain in the U.S. reached $261, France - $268, Canada - $314, Russia - $ 240.