The Association of the Azerbaijani Banks (AAB) set up discussions over the draft changes and supplements to the Tax Code, which will enact into on1 January 2007. The Head of the AAB, Eldar Ismayilov, told Trend that banking community is dissatisfied with the moratorium for taxation of dividends on savings. The taxes holiday on deposits of physical entities 3 years ago, though the privileges are granted for the third time.
According to Ismayilov, in current situation it would be wrong to imposes taxes on the deposits, when the people's trust in the banks is boosting. Upon the collapse of the Soviet Union and loss of savings as a result of financial pyramids, they exactly reply to every change, Ismayilov underscored.
In case of cancellation of a moratorium, starting from 2007 the people will have to pay 10% in taxes for dividends on deposits.
Banks are also dissatisfied with the application of the VAT in respect to incomes obtained from interests of credits.
Upon the consideration of the changes and supplements the Association of Banks intends to submit its proposals to the President's Apparat and Milli Majlis (parliament), he underlined.