ECONOMY

AMENDMENTS AND SUPPLEMENTS TO TAX CODE TO ACCELERATE ECONOMIC DEVELOPMENT

28.11.2003 [18:18]
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The Milli Majlis of Azerbaijan discussed the draft law “On Amendments and Supplement to Tax Code of the Republic of Azerbaijan” during its November 27 sitting. Prior to the discussions, Chairman of the Parliament Murtuz Alasgarov touched upon the issue of deputies’ attendance at sittings. He noted that some deputies attend the sittings irregularly causing serious shortcomings in the work of the Parliament, and are the subject to the media’s fair criticism. Murtuz Alasgarov has warned the deputies and called them for attendance at sittings in a regular manner.

Afterwards, the Chairman of the Milli Majlis standing Commission for Economic Policy Sattar Safarov reported on amendments and settlements to the Tax Code. He said the part of the state budget implementation depends on tax rates, and that to ensure stable budget receipts and improvement of expenditures efficiency, over 80 amendments and settlements are envisaged to the Tax Code. The Cabinet of Ministers, according to the Committee Chairman, has set up a number of new regulations concerning application of separate articles of the Tax Code, and most of the amendments are related to exactly these regulations. “Main issue concerns a change in tax rates,” he said.

Sattar Safarov announced that in the newly proposed Code, the taxes are applied in two scales against three in previous one. The minimum salary subjected to taxation will be 150,000 manat.

After amendments and settlements are approved, salary income-tax rate will be as follows: 151 thousand – 3 million manat – 14%; over 3 million manat – 35%. Other amendments foresee that part of natural persons’ monthly salary to the amount of up to 1,000-fold of the conventional unit, part of the means assigned for medical treatment abroad to the amount of up to 2,000-fold of the conventional unit, part of the cost of hereditary property to the amount of up to 20,000-fold of the conventional unit, as well as lottery-loans and bank operations will be tax exempted.

In addition, excise rates will be set up by the Law i.e. the Tax Code. On e of the main amendments is also reduction in income tax for juridical person from 25 to 24 percent.

Minister of Tax Fazil Mammadov noted addressing the Milli Majlis deputies that as a result of the economic reforms carried out in the country under the leadership of our national leader, esteemed Heydar Aliyev, the rate of economic development continues to increase today that is confirmed by the growth in GDP, attraction of investments and increase in budget receipts. “Proposed amendments and supplements to the Tax Code are the logical continuation of that policy,” he said.

After the deputies expressed their different opinions on the matter, Chairman of Milli Majlis Murtuz Alasgarov noted that Azerbaijan left behind other CIS countries in development of economic, political and other spheres.

The debates will be continued at the next sittings of the Milli Majlis.