Law on cashless payment to be applied soon
By Nigar Abbasova
A new law on non-cash payments will come into force in Azerbaijan beginning from April 2017.
Under the law, trade and public catering entities (registered as VAT payers), with the annual turnover exceeding 200,000 manats ($115,260) will have a right for limited volume of cash payments (not exceeding 30,000 manats per month), while a limit of 15,000 manats ($8,644) will be set for other taxpayers.
Besides, salaries will be accrued only in non-cash form. The law also envisages a limit for cashing operations. Banks and postal operators will charge a simplified tax (1 percent of the sum) for cashing of means kept in bank accounts of legal entities and private entrepreneurs.
Non-cash payments made via POS terminals in Azerbaijan amounted to some 527 million manats ($303.7 million) last year, recording an increase of 131 million manats ($75.49) or 33.1 percent higher than the same indicator of previous year, according to the Central Bank of Azerbaijan (CBA).
Similar transactions via ATMs amounted to some 329 million manats ($189.6 million), featuring a drop of 9 million manats ($5.18 million) or 2.7 percent as compared to the indices of the last year.
In tote, the volume of non-cash payments in 2016 stood at 856 million manats ($493.3 million), recording an increase of 122 million manats ($70.30) or 16.6 percent.
Over the past three years, a share of non-cash payments in Azerbaijan increased by almost four percent. The increase was achieved due to increased electronic payments in stores and retail outlets as well as online purchases.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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