AzerGold talks on introduction of incentive mechanisms in jewelry market

In order to encourage entrepreneurs involved in the production and processing of jewelry made of gold and silver, amendments were made to the Tax Code in Azerbaijan on February 23, 2021, Chairman of the Board of AzerGold CJSC Zakir Ibrahimov said at the business forum ‘Jewelry Production: Current State and Prospects,’ Report informs.

“Also, in accordance with the decree of the Cabinet of Ministers ‘On Amending the Commodity Nomenclature of Foreign Economic Activity, Rates of Import Customs Duties and Rates of Export Customs Duties of Azerbaijan’ dated April 5, 2021, from May 6, 2021, unprocessed silver and gold imported to Azerbaijan have been exempted from the 15 percent import customs duty.

"Undoubtedly, as a result of these changes, a noticeable development of the jewelry sector is expected, as well as an increase of up to two times in the revenues to the country’s budget in the form of taxes and fees. In addition, gold producers will now have the opportunity to officially purchase raw materials and export gold products made of these raw materials. In addition, the introduction of a control mechanism for the turnover and quality of jewelry, the formation of financing and incentive mechanisms in the jewelry market will lead to a further expansion of this area, an increase in entrepreneurs’ investments in this industry.

"Azerbaijan is known for its historical jewelry traditions. Although there has been a recent decline in this area, I believe that the creation of vocational education schools with the aim of passing on this profession from generation to generation is an extremely important issue,” he said.