Azerbaijan, Baku, 10 May / Trend I.Khalilova /
The Ministry of Taxes of Azerbaijan plans to implement 86 measures in 22 destinations under an approved strategic plan for the development of the tax system for 2013-2020, the Minister of Taxes Fazil Mammadov said in an article published in the official press.
"Today, the tax service as well as other areas are facing a global challenge. The 'Azerbaijan 2020: A look at the future' development concept also defines new goals for the national tax system. Global trends taking place in the world and the deepening of international integration makes it necessary to establish a tax system based on knowledge management and upgraded from a technological point of view," the minister said.
According to him the strategic development plan in particular, provides for the introduction of modern information technology to the tax system, the use of an electronic audit, expansion of electronic services and the building of partnerships between the tax authorities and payers.
"Over the past 10 years, the system of knowledge management is used in important government institutions of developed countries including the tax administration and has already proven its effectiveness. From this point of view, the future tax administration in the country will comply with the most advanced international practices and technologies. More in-depth analyses will be undertaken in the field of tax forecasting and the purchase of the latest software is planned to fully identify potential risks of tax evasion. The introduction of a new analytical platform is also under consideration," the minister said.
The application of these technologies according to Mammadov, will provide the basis for improving the reporting and analysis system and reducing the time required for the preparation of reports.
To date, the cost of tax administration makes up 0.35 per cent of total tax revenues. This means the tax service of Azerbaijan has the most effective system of tax administration in Europe.
Currently 49 electronic services out of 57 possible are in use. This, according to the minister increases the confidence of civil and business communities in the tax system.
"As a result of the establishment of a suitable investment climate in Azerbaijan and increase in economic activity, the number of taxpayers in the period from 2000 to 2012 increased more than three times. This figure increased by 72,000 last year, compared to the previous year", Mammadov said.
Tax revenues in the past year compared with 2000, increased about 12-fold (from 510 million manat to six billion manat), which is a result of both economic growth and efficiency of the tax administration, the minister said. Tax revenue from the non-oil sector last year amounted to 3.3 billion manat.
The total number of taxpayers as of April 1, 2013 totalled 500,081.