Details added (first version posted on 10:58)
Baku, Azerbaijan, Mar. 16
By Anvar Mammadov – Trend:
Azerbaijan’s Economy Ministry expects the real GDP growth of the country in 2017 at the level of one percent, Director of the Institute for Scientific Research on Economic Reforms of the country’s Economy Ministry Vilayat Valiyev said.
He made the remarks in Baku Mar. 16 at the sixth annual conference of the Fitch Ratings international rating agency for the investment community of Azerbaijan.
“The share of the non-oil sector of Azerbaijan’s GDP will grow 2.5 percent and amount to 67.9 percent, according to forecasts,” Valiyev said. “The share of the non-oil exports of Azerbaijan’s GDP is projected to grow 8.4 percent.”
He said that the ministry also forecasts real growth of Azerbaijan’s agricultural sector by 4.9 percent.
“This is due to the continuation of state support to the sector,” Valiyev said. “In total, 13 programs were prepared to support silkworm breeding, cotton growing, tobacco growing, production of tea, hazelnut, etc. We also forecast a 7.6 percent increase in production and services sphere, including the sectors of tourism and trade. This is related to the simplification of the visa regime, as well as the use of the Tax Free system.”
The visa regime was greatly facilitated since the introduction of the ASAN Visa system, which makes it possible for foreigners and stateless persons to get an e-visa to Azerbaijan through a single online portal within three days without applying to state organizations. The online portal was launched Jan. 10, 2017.
The Tax Free system was introduced in Azerbaijan June 16, 2016. Foreign citizens can benefit from Tax Free system, if the cost of purchased goods per one e-tax invoice is not less than 300 Azerbaijani manats, including VAT. The goods should be taken out of Azerbaijan’s territory within 90 days from the date of purchase.
Standard VAT rate in Azerbaijan is 18 percent. Regardless of the transfer method, foreign citizens will be refunded the amount of VAT paid for the purchased goods after withholding 20 percent service fee.
The representative of Azerbaijan’s Economy Ministry noted that a 2.9 percent growth of the transport sector is also forecasted in 2017, and this is related to the implementation of the North-South and the East-West transport corridor projects.
In addition, a 6.7 percent growth is expected in the communications and information sphere, and a 2.2 percent growth is projected in the sphere of social and other services in Azerbaijan, Valiyev added.