By Ofeliya Afandiyeva
Azerbaijan's Minister of Economy Mikayil Jabbarov has said that tax benefits' share in the country’s GDP dropped from 4.7 percent to 2.8 percent in 2019, and the number of tax payers increased by 10 percent in the same year.
Jabbarov made the remarks during the discussions of draft amendments to the Tax Code at the plenary meeting of Parliament on November 14.
“Regardless of the fact that the number of tax benefits and preferences are increasing annually, their share in the GDP is dropping. Compared to the benefits and preferences in the country's GDP of 2017 and 2018, there is a decline from 4.7 percent to 2.8 percent respectively,” Jabbarov said.
Moreover, during 10 months of 2019, the number of active taxpayers in Azerbaijan grew by 44,608 or 10.1 percent. The number of VAT payers also increased by 39.2 percent or by 5,941 people. The number of facilities increased by 7.3 percent in 2019.
The Parliament adopted proposed amendments to the Tax Code in the first reading. The amendment envisages 10 new benefits and exemptions: residents of industrial parks and blocks, goods, works and services related to Formula 1 and Formula 2 races, poultry exporters and etc.
In total,1 million 267,109 taxpayers had the right to use tax benefits and exemptions in Azerbaijan in 2019. The overall amount of benefits and exemptions is estimated at $759.5 million.
Jabbarov recently announced that the amendments to the country’s Tax Code will ensure transparency in economy, develop entrepreneurship and simplify the accounting system for tax payments.
It should be noted that current income tax benefits entered into force for individual entrepreneurs in Azerbaijan on January 2019, according to the last amendments to the Tax Code, approved by President on December 21, 2018.
The budget discussions in the parliament launched on November 12 were also held on November 13 and concluded on November 14.
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