Banking System of Azerbaijan does not Support Security Checks of VAT Accounts
Azerbaijan, Baku / corr. Trend U.Ismaylova / The Head of the Legislation and Methodology Department of Taxes Ministry, Shamil Arabov, said that the banking system of Azerbaijan does not support the idea to apply security checks of VAT accounts.
The proposal regarding VAT accounts was devised three years ago to improve the VAT administration system. Applying the system of VAT accounts will provide an opportunity to increase the State budget incomes linked with this type of taxes by 30-50%. Presently the VAT tariffs in Azerbaijan equal 18%.
Arabov said that applying security checks to VAT accounts is not beneficial for the banks because it could mean people will open separate banking accounts to transfer finances in order to by-pass this kind of tax.
In 2007 the State budget income from VAT in line with the Taxes Ministry is forecasted at the amount of AZN 580mln.