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Taxes Ministry seeks to increase tax revenues

19 May 2016 16:09 (UTC+04:00)
Taxes Ministry seeks to increase tax revenues

By Nigar Abbasova

Azerbaijan's Ministry of Taxes is taking bids to increase tax revenues to the State budget.

The ministry is working over taxation for foreign companies rendering different online-services in the country.

Sahib Alekperov Deputy Tax Minister told journalists that imposing tax liabilities for foreign companies requires efforts and long period of time.

He also mentioned that new organization under the Taxes Ministry was created in the country to analyze tax crime and due management in collection of tax debts in an effort to ensure proper operation of the system.

Alekperov said that the ministry decided to to establish this body at its board meeting. Alekperov added that previously the organization was operating under the Tax crime Office.

The organization is headed by Zeynallabdin Mamedzade (former head of the ministry’s legal organization).

Regarding the increase in tax collection in the country's regions Alakbarov said that they strive to raise the volume of tax exaction in the regions. "With this purpose we have created a new organization to manage territorial tax authorities which is headed by Elchin Beylarov,” he said.

Alekperov said that reforms in the Taxes Ministry are aimed at increase of tax revenues to the state budget.

He stressed that exempting tourist attractions from taxes is currently under consideration,

“The issue needs thorough consideration. In case the tax exemption for tourist attractions is accepted it should benefit population and trigger growth of revenues to the state budget,” he noted, adding that the sphere needs proper management and marketing.

Head of the administration on tax policy and strategic research Samira Mustafayeva, in her turn, the government was positive with regard to a clause on imposition of taxes on the e-commerce that the ministry developed last year.

“E-commerce stands for non-cash payment. We are currently cooperating with banks in order to get information on non-cash payments made by means of processing centres and banks,” she said.

She added that e-commerce envisages not only online purchase and sale of certain goods but also online-games, e-exchange, downloading of mobile applications, music, films, through the services like iTunes.

In accordance with the information provided by State Statistics committee, the volume of the retail e-commerce in 2015 accounted for 12.8 million manats, which is a double extent of the rate shown in 2014.

Tax revenues from private sector in non-oil industry of Azerbaijan amounted to 1.156 billion manats ($0.768 billion) in January to April, 2016.

Ilkin Veliyev, Deputy Minister of Taxes, said that over the first four months of 2016 the Taxes Ministry transferred 2.205 billion manats ($1.466 billion) in tax payments to the state budget, exceeding the forecast by 4.8 percent.

He stressed that approximately 1.7 billion manats of tax revenues accounts for non-oil industry. The State Oil Company of Azerbaijan (SOCAR) has provided for about 403 million manats ($268 million) while foreign companies operating in the country have provided tax payments in the amount of 115 million manats ($76 million).

The state budget revenues transferred through the Ministry of Taxes are expected to reach 7.01 billion manats ($4.66) in 2016. The forecast is based on oil prices.

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