Why have taxes on cars and telephones increased?

Baku/27.10.21/Turan: The size of the state duty for registration of cars and telephones imported to Azerbaijan has been increased. In this regard, the law "On State Duties" will be amended accordingly. The draft amendments to the law will be discussed in parliament in the near future.

Why did the amount of the state duty for registration of cars and phones increase?

Economist Nazim Baidamirli answers these and other questions in the "Difficult Question" program.

According to him, in recent years, the provision of state services has been commercialized in Azerbaijan. Although the opposite trend is observed in the world - if the services are provided by any state or state-financed organization, then the size of the cost of these services and the amount of expenses for the maintenance of the corresponding organization are made public.

“As a rule, these expenses do not exceed 20-30% of the service cost. Thus, the cost of the service provided to citizens by the state does not greatly exceed its cost,” he said.

According to the economist, one of the factors that determine the absence of a market economy in Azerbaijan is that state bodies, budgetary organizations, starting with ASAN-service, ministries and committees, greatly overestimate the cost of their services.

“In some cases, the cost of the service is overstated by 10-15 times, and by me, even by 100 times. A civil passport, the cost of which is 2 manats, costs 40 manats for citizens. The same picture is with the identity card, driver's license, ”said Baydamirli.

The expert noted that even commercial structures do not overstate prices, as budget organizations do it. “They don't need an overpriced, uncompetitive price for services. This only cause losses. The state structure is another matter. They strongly inflate prices and since there is no alternative, citizens are forced to pay,” the expert said. The state itself stimulates natural monopolies, Baydemirli stated.--0--