Azerbaijan plans to equalise excise tax to local and imported products
Azerbaijan, Baku, Oct. 28 /Trend A.Akhundov/
Equating the rates of excise tax on imported goods, as well as those for products produced in the country, is one of the priorities of Azerbaijan's tax policy, the draft concept of socio-economic development of Azerbaijan for 2014 and the next three years said.
A budget package for 2014 is currently being considered by the Milli Majlis (parliament) of the country.
Today the proportion between the excise duty on production imported and sold on the domestic market remains on tobacco and alcohol products. They are planned to be brought to the average index by increasing excise taxes on domestic products and moving towards import prices, although a parity of rates is also possible through the reduction of rates of the import excise taxes.
The increase in the difference between rates on domestic and imported alcoholic products occurred after the increase excise taxes on imported alcohol products by 1.5-2 times, from April 1, 2007. They were revised in order to stimulate the development of wine growing in the country, better use of wine plant capacities, protection of the domestic market, as well as regulation of budgetary revenues from this sector
The excise tax on vehicles was also introduced in 2007 in order to support national production. Zero rate tax is being implemented on the local market for passenger cars, sport and pleasure yachts, as well as other water vehicles produced in Azerbaijan.
In addition, the government intends to achieve the legalisation of the salary system by improving income tax rates, tax remissions and exemptions.
Priorities also include the creation of a legal framework for application of transfer pricing; promotion of non-cash payments; improvement of income taxes, value added tax, excise taxes, property taxes and travel and simplified taxes.
Also included are the promotion of investments in the economy and innovative activity; optimisation of tax rates; broadening of the tax base by minimising tax exemptions and privileges; creation of a suitable tax environment for business activities; preparation of proposals for gradual transfer of the tax burden from production to consumption and elimination of benefits and privileges on VAT and differentiation of its rates.