Azernews.Az

Application of taxation to private individuals and organizations causing damage to the environment has come into the spotlight in Azerbaijan, according to an official of the Ministry of Taxes.

"The problem of environmental pollution is very serious for Azerbaijan. This increases the urgency of the issue of applying taxation to the individuals and legal entities that have caused damage to the environment," Akif Musayev, the ministry's official in charge of taxation policy and strategic research, wrote in an article.

Musayev wrote in his article, which was published Wednesday in the Taxes newspaper, the print edition of the ministry, that the world is developing economic policy instruments designed to prevent environmental pollution.

"For this purpose, a 'green' tax policy is being formulated," he said. "Taxes related to the environment are one the most effective tools for economic and environmental policies. For example, Sweden ranked first in the world in terms of emissions of nitrogen oxides. Introduction in this country in 1992 of a tax for this type of emissions reduced these emissions by a third in two years."

Musayev said that similar taxes have been successfully introduced in China, Japan, Korea, Spain, Switzerland, the UK and Israel.

"According to research conducted by the Organisation for Economic Cooperation and Development (OECD), the correct use of economic policy instruments will allow developed countries to reduce by 2020 the volume of gas emissions by 20 percent. Due to these factors alone, the GDP could be increased by two per cent," Musayev added.