About 30 000 Tons of Paints Hidden from Tax

The official volume of production of paints (coatings) in Azerbaijan for 11 months of this year decreased by 12.8%, according to the State Statistics Committee.

Since the beginning of the year the country produced 4 134.5 tons of coatings, with approximately 1,500 tons exported. The most conservative estimate of the annual consumption of the products in the country is 47 500 tons.

According to the State Customs Committee, in January-September 2014 imported from abroad were about 15 000 tons of paint, including raw materials for the organization of their production. Importers declared goods at the border for $ 822.6 per ton, which is $ 185 less than at the end of 2013 ($ 1,008 / t). On retail imported brands of paints are offered at prices ranging from 3 AZN. Some brands are sold at 8-12 manat.

It is noteworthy that the Azerbaijani paints are also exported at low prices. During the first 9 months of this year exports came to 881.6 $ / ton, which is $ 16 lower than in 2013.

In Armenia, where the standard of living is low, the activity of the construction market is not large and the population is three times less than in Azerbaijan in 2012, there was produced 10 800 tons (-7.6%) of paints, reported the Armenian media. This is three times more than in Azerbaijan. In Kazakhstan (population of 17 million people), which can be compared with Azerbaijan on a number of criteria, in 2012 there was produced 60 000 tons of paint. However, in the consumption of paint in this country imports from Russia, Germany, Finland and Denmark takes a tangible position.

The average consumption of paint per capita in the world is 11.5 kg. In China, the figure is 6.4 kg, Russia - 5.2 kg, Kazakhstan - 5.6 kg.

According to experts, given the level of investment in the economy, the population’s investments in property and so forth factors, consumption of paint in Azerbaijan is at least 5 kg per capita, or 47,500 tons per year. About 30 000 tons of this amount is not taken into account in production or import. Unaccounted turnover of paints in the country is not less than 60 million AZN.

Experts estimate that about 80% of the consumption of paint is met at the expense of local production. In 2013, the volume of the production of coatings by local businesses (over 30 subjects) attracted to tax was 5 200 tons (+48%). -0-