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WEEKLY ECONOMIC REVIEW

Analysis Materials 18 April 2006 12:02

Fazil Mamadov, the Azerbaijani Minister of Taxes, held a news conference last week. He informed the media about the issues of interest.

Changes and supplements can be injected in the Tax Code prior to the summer vocation of the Milli Majlis [parliament]. Fazil Mammadov, the Minister of Taxes, said that that at the instruction of the head of state the changes and supplements to the tax legislation will be injected separately from the budget packet, which will be submitted to the parliament in October-November. The Ministers acknowledged that it was the more civilized way rather correcting the entire budget packet.

Mammadov said that essential changes to the Tax Code, particularly, cut in tax rates, were not expected in 2007. The essential changes will concern property tax and definite work on the improvement of this tax is underway. The changes will also be made in the property registration, estimation, taxation by this type of taxes. In future it is planned to unify the property taxes with the royalties. A special commission has been established at the Ministry in his respect.

The Tax ministry has finished its audit in the Azpetrol holding, but the results will be known only after the official act will be sent to the holding, the tax minister, Fazil Mammedov told at the press-conference on April 12, Trend reports.

There are serious defaults both in Azpetrol and in its branch company Azertrans, the minister said. The tax audit started last year and it was continued as the facts of huge tax evasion have been discovered.

In general, in the end of the 1st quarter of 2006, the tax revenues grew 32.6% as compared to last year at the expense of both oil and non-oil sector.

Thus, there is favorable scene in the tax sector of Azerbaijan, where exists rise in tax revenues and cut in cases of tax evasion. To bring an order in the cash circulation and reduce the case of evasion from tax payment the installation of POS-terminal along with cash machines is carried out a part of measures for transition to non-cash settlements. They will applied in hospitals, enterprises involved in sale of tickets for international and city passenger transportation system, automobile deliveries, entertaining facilities.

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