New types of taxes may be applied in Azerbaijan - OPINION

Research Group of Report News Agency examined the additional sources of taxation in the world

Baku. 17 October. REPORT.AZ/ Next year Azerbaijan is expected to expand the base of tax revenues. This is confirmed by a number of points that stressed President Ilham Aliyev in his speech at a meeting of the Cabinet of Ministers dedicated to the results of socioeconomic development in nine months of 2015 and the upcoming challenges.

President Ilham Aliyev said, the tax and customs authorities have to work transparently and efficiently, in which case they can collect more money in the budget: "There are such opportunities, resources. The tax and customs authorities were requested, so that next year they identified the resources and raise additional funds in the budget. Of course, the tax base should be broadened. We all know that the opportunities are wide enough."

Research Group of Report News Agency examined the additional sources of taxation in the world. In many European countries, including Turkey, there is a tax on luxury goods and luxury category. For example, France in order to cover the budget deficit in 2013-2014 launched a tax of 75% on annual income of legal entities and individuals more than 1 mln. Euros. Turkey applies a special tax on luxury goods category. As known in the world practice, in times of global crises, mainly increases the tax burden of the wealthy classes. This prevents an additional tax burden on a class of small and medium entrepreneurs.

Azerbaijan, based on the practice of developed countries, can apply the following new types of taxes:

1. Real estate tax on owners of houses and apartments with a total area of over 200 square meters. m. of apartment buildings. Tax rates should be different in the city and beyond;

2. A high tax on luxury goods category, in particular, imported from abroad, expensive goods. These include expensive watches, brand jewelry, accessories;

3. Additional tax on cars with engine capacity over 4,000 cc;

4. Additional tax and customs duties on imported goods, if domestic production of them is available;

5. Expensive alcoholic beverages, cigarettes, etc imported from abroad. 

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