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SCC: Azerbaijan should reduce dependence on imports

Business Materials 24 May 2011 10:45 (UTC +04:00)

Azerbaijan, Baku, May 24 / Trend, I. Khalilova /

In January-April 2011, 54 percent of goods import into Azerbaijan was exempted from payment of customs duties and taxes, the Azerbaijani State Customs Committee's Financial-Tariff and Currency Regulation Department head Mirgasim Vahabov said at a meeting of the Parliamentary Committee on Economic and Social Policy during the discussions of a bill on amendments to the state budget for 2011.

"During this year the Azerbaijani government has taken four decisions to exempt imports of certain goods from payment of VAT and customs duties," Vahabov said. "This confirms the fact that the tax base for customs duties reduces, and reduction of dependence on imports should be the main goal of non-oil sector development in Azerbaijan," he added.

However, within the correction of budget forecasts for 2011 a plan of collection of customs duties and taxes for the SCC envisages a growth up to 1.140 million manat, which is 1.8 percent more than the forecast approved for this year at 3.5 percent of the actual figure of 2010. From VAT collections the customs authorities will ensure the state budget revenues at 830 million manat with growth of 1.5 percent and 2.3 percent respectively, from customs duties - 223 million manat (3.7 percent and 2.2 percent respectively).

"In order to avoid the situation faced by the customs authorities in 2009, when the forecast of collections at 1.3 billion manat was executed with a deficit, it would be appropriate for government agencies to carry out coordination of actions when defining the forecasts, as the planning task for the Customs Committee must be balanced given the reality," Vahabov said.

The official exchange rate is 0.79 manat to $1 on May 24.

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