Azernews.Az

By Nazrin Gadimova

President Ilham Aliyev has signed a number of documents aimed at strengthening non-oil sectors of the local economy.

On the background of the worldwide economic fluctuations, the government is keen on diversifying the economy by encouraging local entrepreneurs.

Thus, the amendments to the Tax Code, approved by the head of state on February 16, provide for tax benefits to legal and physical entities engaged in investment activities. Following the amendments, the entrepreneurs will get the relevant document, granting them with tax and customs privileges.

After receiving this document, physical and legal entities will be exempt from paying taxes in the amount of 50 percent of their revenues and incomes, respectively, for seven years.

Moreover, local entrepreneurs will also be exempt from paying property and land taxes for a period of seven years after receiving the document.

From January 1, 2016, wheat importers and sellers, as well as flour and bread manufacturers and sellers are exempt from paying taxes for a year under a relevant presidential decree.

President Aliyev further approved amendments to the law “On public purchases”. Following these amendments, while implementing public purchases preference will be given to the high-quality goods produced by local manufacturers, even if the value of the tender offer exceeds by 20 percent.

Encouraging local manufacturers will be mandatory after amendments enter into force.

Moreover, the head of the state approved amendments to the law “On customs tariff”. Following the changes, legal and physical entities are exempt from customs duties and value-added tax (VAT) on import of technical equipment for seven years.

After receiving an appropriate document, entrepreneurs will be able to take advantage of these customs privileges.

Any managing organization or industrial or technology parks’ operator should have a document confirming the import of technological equipment in order to build an infrastructure or construct any production facilities, as well as to conduct research, test and development works.

Furthermore, Azerbaijan joined “United Nations Convention on Contracts for the International Sale of Goods”. President Aliyev signed an appropriate law on February 16.

Being a treaty that is a uniform international sales law, it has been ratified by 84 states that account for a significant proportion of world trade, making it one of the most successful international uniform laws.

The Azerbaijani President believes that 2016 will be successful for the country.

“At this stage the priority issues are business development, the deepening of radical reforms,” Ilham Aliyev noted as part of his visit to Azerbaijan’s Tovuz region, adding that he is confident that the new reforms will soon play an important role in the development of the local economy.

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Nazrin Gadimova is AzerNews’ staff journalist, follow her on Twitter: @NazrinGadimova

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