Azerbaijan, Baku / corr Trend I.Khalilova / Natik Aliyev, the Azerbaijani Minister for Industry and Energy, stated on 5 June that the Ministry has developed a state program to develop the non-oil sector in 2007-2012.
"We have analyzed the state of the non-oil industry of the country and ascertained the major directions for the future development of this sector. We have determined what Azerbaijan needs from its existence of local raw materials to develop the specific sectors," the minister stressed.
It is currently necessary for the country to develop all spheres of the non-oil sector. The priority sectors are those which have a significant raw material base. "We need it not to depend on other countries," stressed. The minister regarded the existence of technology as the second most important factor for the development of this industry.
"If we want to reach the relevant level of competitive capacity production in line with the European standards, then we need to advance our technology. We are defining the level of technology in every field," he advised.
He regarded the management system as the third factor. The application of special tax and a fiscal system to enable the attraction of foreign investments, but also advanced technology was regarded as the fourth factor. "It is necessary to create a new tax and customs system, new laws, which will attract capital and human resources to the non-oil sector, which is currently almost non-existent. Large enterprises that functioned during the former Soviet period do not exist at present," the minister noted.
The laws to develop the non-oil sector should be identical with those which were adopted for the development of the oil fields. "We have established definite favorable tax and customs systems for the oil sector which has ensured its success. Now we have attracted $20bln to this sector,' he added.
Within the framework of the tax system, it is proposed to apply tax recess, cut rates and to release the equipment supply from customs duties. "Every project should be considered separately," the minister concluded.