Azernews.Az

MP Vahid Ahmadov said the Value Added Tax (VAT) should be brought down from the current 18%.
"Minister of Taxes Fazil Mammadov vowed to take the measure during a debate in parliament last year, but no work has been done in this direction so far," Ahmadov said.
Another parliament member, Ali Masimli, called on the government to go ahead with the tax cuts.
"The optimal minimum VAT rate around the world is 5-6%, while the maximum is 15%," he said, offering to cut VAT by 0.5-1% every year to eventually bring it to that level.
MP Rufat Guliyev said he was also expecting a reduction in tax rates. He voiced confidence that the measure would not adversely affect the state budget. Guliyev said tax reductions would actually encourage contributions to the state given that many businessmen are currently dodging tax payments. Taxes are paid in full only by oil companies and companies like the McDonalds fast food chain.
The MP noted that wages have considerably risen in the country. Even in restaurants, he said, workers receiving the lowest pay - waiters - usually get around 300 manats ($350) a month, but the pay is not accounted for. If tax cuts are enforced, however, more funds will flow into the state budget, Guliyev said.
"I am closely in touch with businessmen. All of them want to work in accord with the letter of the law, but the current tax rates do not allow this. The government could give an incentive to this by lowering taxes in order to legalize all revenues of law-abiding entrepreneurs," the MP said.