ADB plans to support country's tax system

25 July 2019 17:27 (UTC+04:00)

By Mirsaid Ibrahimzade

Asian Development Bank (ADB) keeps on supporting Azerbaijan and providing it with funds to achieve more diversified, independent and sustainable economy.

ADB plans to provide technical assistance in the amount of $100,000 to Azerbaijan to improve the tax policy and administration, ADB told local media.

As part of technical assistance, tax and finance ministries will be supported to improve tax revenue management and policy analysis aimed at mobilizing domestic resources to reduce fiscal dependence on oil revenues.

The technical assistance will also cover such areas as tax risk assessment procedures, tax debt collection and control, human resource development, tax appeal systems and tax policy analysis.

The Bank noted that as a result of the project, it expects to improve the non-oil fiscal position in the country, enhance the information system of the tax administration, including the tax appeal and tax debt management system. In addition, there is a goal to make better the capacity of tax ministry officials on tax administration and tax ministry staff on tax policy analysis.

Taking into account the forecast of ADB, Azerbaijan’s indicator in the World Bank’s Doing Business rating will reach at least 80 points (78.64 points in 2018), lending in national currency from non-bank credit organizations will increase by 10 percent of the base figure of 413.9 million manats, and agricultural loans will reach 5 percent of the loan portfolio of banks and non-bank credit organizations, with a base figure of 3 percent.

ADB has approved the five-year Country Partnership Strategy for Azerbaijan designed for 2019-2023. As part of the new five-year strategy, ADB plans to allocate $900 million to Azerbaijan.

In general, ADB has provided a $5.1 billion loan, guarantee, grant and technical assistance for the country so far.

Earlier, the Bank stated that it plans to allocate loans totaling $280 million to Azerbaijan for the development of the private sector and improve its efficiency in 2020-2022.

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Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1

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