IMF exec calls to reduce ‘shadow economy’ in Azerbaijan
An International Monetary Fund executive has claimed "the shadow
economy" is immense in Azerbaijan, which necessitates pursuing
reforms in this area.
Speaking to reporters on a visit to Baku on Wednesday, Nienke Oomes, who heads an IMF mission visiting the country, maintained, referring to international groups, that "the shadow economy" accounts to about 60 percent in the country.
She said, further, that there are two ways to eliminate fiscal deficit in the non-oil sector.
"The first one is streamlining tax administration. In other words, those who have not been paying taxes so far should begin doing so now, but more transparently. This would also translate into taxation authorities’ conducting more transparent procedures.
"Reducing the ‘shadow economy’ is another option to remove fiscal deficit," said Oomes.
Such practices of doing business are referred to by economists mainly as unreported incomes received from customs duties, arms and drug trafficking, and other sources.
The IMF mission is holding meetings with Azerbaijani officials and is due to stay in the country until early March.*
Speaking to reporters on a visit to Baku on Wednesday, Nienke Oomes, who heads an IMF mission visiting the country, maintained, referring to international groups, that "the shadow economy" accounts to about 60 percent in the country.
She said, further, that there are two ways to eliminate fiscal deficit in the non-oil sector.
"The first one is streamlining tax administration. In other words, those who have not been paying taxes so far should begin doing so now, but more transparently. This would also translate into taxation authorities’ conducting more transparent procedures.
"Reducing the ‘shadow economy’ is another option to remove fiscal deficit," said Oomes.
Such practices of doing business are referred to by economists mainly as unreported incomes received from customs duties, arms and drug trafficking, and other sources.
The IMF mission is holding meetings with Azerbaijani officials and is due to stay in the country until early March.*
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