Parliament ends its extraordinary meeting
By Nigar Abbasova
Milli Majlis [Azerbaijani Parliament] held its last plenary meeting within the extraordinary session on June 24.
The agenda of the session covered 9 issues including changes to the Tax Code, Migratory Code, Civil and Civil procedures Codes as well as the laws “On citizenship” and “On execution”.
The changes to the Code of Administrative Offences envisage expelling of foreign citizens and stateless persons from the country by administrative means alongside with the imposition of the penalty should they fail to return removed goods and transport facilities, the return of which is compulsory.
The law in-effect stipulates a confiscation of goods and transport vehicles, which are direct objects of administrative misconduct or imposition of a penalty with the amount ranging from 75-100 percent of its cost for the non-export of goods and transport facilities beyond the customs territory of Azerbaijan at determined period, as well as for the non-return of the goods and transport facilities to the customs territory of the country should such export or return is obligatory.
The MPs also approved the amendments to the country’s Tax Code, launching a tax free system, under which the goods purchased in the country’s territory by foreigners and stateless persons will be exempted from VAT.
Tax free is a mechanism of refunding the VAT paid by foreign citizens during purchase of the goods not meant for production or commercial needs.
During the Azerbaijani parliament’s plenary session, Chairman of the parliament’s Committee on economic policy, industry and entrepreneurship Ziya Samadzade said the aim of launching tax free system is the organization and promotion of the acquisition of goods and products by foreigners in Azerbaijan’s territory, to attract tourists and increase turnover.
It is expected that the amount returned on the tax free system (VAT) will be compensated by profit taxes against the background of the growth in the country’s trade and economic sphere, he added.
Foreign citizens can benefit from tax free system, if the cost of purchased goods per one e-tax invoice is not less than 300 Azerbaijani manats, including VAT. The goods should be taken out of Azerbaijan’s territory within 90 days from the date of purchase.
Standard VAT rate in Azerbaijan is 18 percent. Regardless of the transfer method, foreign citizens will be refunded the amount of VAT paid for the purchased goods after withholding 20 percent service fee.
The extraordinary session included two plenary meetings, as well as meetings of several parliamentary committees.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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