Baku. 27 April. REPORT.AZ/ Azerbaijan proposes to abolish the tax on reinvestment.
Report informs, Mustafa Abbasbayli, Member of the Board and Head of the Legal Committee of the Caspian European Club said, speaking about proposals submitted to President Ilham Aliyev related to reforms in various fields of economy.
"That is, if a business entity makes a profit and reinvests it, to be more exact if money remains in a company or is invested in another sphere, this may be the case of not charging taxes. It will help to boost investment in the real sector of economy" .
Moreover, here we also indicated the provision on visas, since some difficulties are faced in obtaining business visas for entering Azerbaijan. So, one of the proposals is to simplify the visa processes, not only for business visas but also for tourist visas, taking into account the importance of the tourism sector. And to date, a lot of work is conducted in this direction since it will promote an increase in the investment attractiveness of our country.
As is known, the drop in oil prices in the global market has affected the situation in the country. Azerbaijan in particular was affected in two ways. The first is the decrease in government revenues from oil sales. So, accordingly, the government was forced to optimise spending on some projects, etc. As a result, economy narrowed. Secondly, the foreign trade balance of Azerbaijan was closed with minus and the country was compelled to devalue the local currency. This influenced the inflation. Prices for many products shot up, also negatively affecting the economy. But, as I already said, finally the government took serious measures on institutional, financial and economic reforms, improvement of the investment climate that minimized the effects caused by the global processes. In my option, the situation has stabilized now, so we do not expect another devaluation of the Azerbaijan manat.
At present, we see a big potential in the sector of agriculture and tourism. We find both of these directions very promising and think the government is making maximum efforts in this area. The example of this is the new decree of the President, which envisages a creation of a new company to deal with procurement of agricultural products. We believe it will strongly influence the development of agriculture in Azerbaijan.
Chairman of the Committee also said that along with agriculture and tourism, the transport sector is also promising. Azerbaijan is currently turning into a transit zone for the neighbouring countries. The favourable geographical location enables Azerbaijan to develop into a regional transport hub. This, in turn, will increase budget receipts and create more opportunities for the development of other sectors.