Turkey`s finance ministry refuses to ease tax burden for TANAP
Turkey`s Ministry of Finance has refused to ease the tax burden for TANAP, a pipeline project designed to transport gas from the Azerbaijani Shah Deniz field to Turkey, Zaman newspaper reported last week with reference to the Turkish energy ministry.
In response to the appeal of TANAP to simplify the tax regime -- which concerns such taxes as VAT, income tax, excise tax and profit tax -- the Ministry of Finance pledged to provide a VAT refund after the company which will implement the project places the total amount of investments.
Despite the Finance Ministry`s rejecting TANAP`s request, the final say on the issue rests with Turkey`s Ministry of Energy and Natural Resources.
Azerbaijan and Turkey plan to build a pipeline from the eastern border of Turkey to the country`s western border. Turkish state-owned energy company BOTAS has a 20 percent stake in TANAP, while Azerbaijani state energy firm Socar holds 80 percent in the project.
Initial capacity of the pipeline is expected to be 16 billion cubic meters per year. About 6 billion cubic meters of the volume will be allocated to Turkey, while the rest will be transported to Europe. At present, Azerbaijan is on the verge of choosing the route for gas exports to Europe via Turkey.
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