Investments in non-oil sector grew by 39pct
By Sara Israfilbayova
About 5.24 billion manats ($3.082 billion) was directed to the development of the economic and social sphere from all financial sources in January-May 2018.
The State Statistics Committee reported that 55.1 percent or 2.89 billion manats ($1.7 billion) of the funds were directed to the non-oil sector.
As many as 72.5 percent of the total investment was spent on construction and installation works. For the construction of production facilities 73.1 percent were spent, service facilities - 20.8 percent, residential houses with a total area of 640,800 square meters-6.1 percent of the funds spent.
About 53.7 percent of the total investments were directed from internal sources to the fixed capital.
Azerbaijan takes great steps in its intention to diversify the national economy on the basis of further development of the non-oil sector.
To this end, the government does its best to encourage business doing in the country and to support entrepreneurs through creating necessary conditions for the development of a healthy business environment.
During the period of the law’s validity, only tax audits, quality control of medicines by relevant executive authorities, verification of compliance with safety regulations and safety control of food products, as well as checks on cases that threaten the health and life of people, national security and economic interests may be carried out.
The suspension of inspections is considered to be an important step for the stimulation of the business development in the country.
Moreover, in order to support entrepreneurship the government creates many other conditions as, issuance of the investment incentives documents following the approval of amendments proposed to the Tax Code of the country.
Under the investment incentives document, half of the revenue of an individual entrepreneur, profits of legal entity are exempted from income tax for seven years. Import of equipment for the implementation of the projects is also exempt of VAT and customs duties.
Also, the state refunds 3-6 percent of the customs value of goods to non-oil exporters within the framework of mechanisms on promoting exports of non-oil products.
It is also planned to create the Agency of Small and Medium Enterprises and the Guarantee Credit Fund in 2017-2018.
Thus, the government of Azerbaijan makes huge efforts to stimulate business development in the country through introducing privileges for entrepreneurs.
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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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