Azerbaijan, Baku /corr. Trend S.Babayeva / Canceling value added tax (VAT) for the grain importers in Azerbaijan is the only way out for the increase in bread price, said the Department Chief of the Agriculture Ministry of Azerbaijan, Sabir Veliyev.
According to him, currently the State bodies are discussing the expediency to make such a decision.
"We consider that canceling 18.3% VAT may positively affect the settlement of the problem," Veliyev said.
In addition, he stressed that due to cancellation of the VAT, the State will incur huge losses because each ton of imported grain brings $48.5 to the State budget. The final decision will be made by the Government, Veliyev added.
Presently a special commission of the Agriculture Ministry is searching the grain reserves in Azerbaijan. Whilst making a concluding decision, the Government will consider the results of the monitoring.
This year nearly 2 mln tons of grain are planned to be produced in Azerbaijan. Some 1.7 mln tons have already been produced.