Azerbaijan doesn't consider extending tax privileges for banks and insurance companies
Azerbaijan, Baku, Oct. 22 /Trend, N.Ismayilova/
Azerbaijan still does not consider the extension of the exemption from tax on income directed to capitalization of banks, insurance and reinsurance companies, the Central Bank of Azerbaijan (CBA) Director General Rashad Orujov told reporters on Saturday.
"Such a decision has not yet been made. It was an anti-crisis measure to stimulate the increase of capital of banks, insurance and reinsurance companies. And it gave a positive result," said Orujov.
The Law on raising and promoting capital of banks, insurance and reinsurance companies, providing a tax exemption on profits of banks, insurance and reinsurance companies in order to increase the capitalization by 2012 came into force on Jan. 1, 2009. This step was taken to speed up the development of the financial sector, improve the quality of services in the banking and insurance sector, promote capitalization of companies.
According to the data provided by the Central Bank of Azerbaijan, as of Sept. 1, 2011, the assets of Azerbaijani banks amounted to 13.302.8 billion manat - the highest index in the history of the Azerbaijani banking sector. The total capital of banks amounted to 2.036.1 billion manat, which is also a record figure. A total of 44 banks operate in Azerbaijan.