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Strategic directions defined for industrial development

25 February 2016 10:20 (UTC+04:00)
Strategic directions defined for industrial development

By Nazrin Gadimova

The government of Azerbaijan has defined key directions in the industry development in a bid to develop the non-oil sector of the economy.

Deputy Economy Minister Niyazi Safarov announced that this development is based on a rational use of natural resources, creation of technological chains until the output of final goods, modernization and innovation, increasing volumes of competitive industrial production, as well as expanding volume of non-oil export.

Safarov made the remarks at a conference titled “State Support for Development of the Industry” this week, adding that Azerbaijan is taking appropriate comprehensive measures.

The deputy minister stressed that these measures will have a positive impact on the development of non-oil industry. Moreover, competitiveness of industrial goods produced in Azerbaijan will increase as a result.

Vugar Bayramov, Chairman of the Center for Economic and Social Development (CESD) commenting on the issue said that the development of the non-oil sector is a priority objective for the Azerbaijani government.

“The fact that the oil price in the budget laid down at the level of $25, shows that in 2016 the priority objective of the state is to eliminate the dependence on oil and support the non-oil sector,” he said.

Azerbaijan, that saw two devaluations last year over the sharp decrease in oil prices on the world market, now takes concrete steps to strengthen its domestic market. To ensure the development of economy’s non-oil sector, the government has issued a number of documents aimed at protecting and promoting local manufacturers.

Bayramov reminded that the amendments made to the Tax Code, approved by the head of state on February 16, provide tax benefits to legal and physical entities engaged in investment activities. Entrepreneurs, who have invested more than $3.2 million, can automatically apply for an appropriate document.

“This document will give businessmen an opportunity to cut taxes on revenues and incomes by about half, while imported equipment will be tax-exempted,” the expert said.

Bayramov further noted that the state has increased the amount of funds issued for the promotion of entrepreneurs engaged in the non-oil sector of the economy.

“As you know, the President has ordered to allocate $641.3 million to entrepreneurs. Of this amount, $160.3 million will be provided through the National Fund for Entrepreneurship Support, and the remaining $481 million will be offered to entrepreneurs through the government agencies,” he added.

Bayramov believes that one of the key points here is to attract investment. Thus, the head of the state has signed a decree to encourage investment activities, improve business environment, increase industrial production, as well as create a mechanism and normative legal acts related to encouragement of investments.

He said the government has set a goal to eliminate the monopoly, to liberalize import and export, as well as to facilitate access to the market.

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

Follow us on Twitter @AzerNewsAz

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