Construction Project for Production of Steel Exempted from VAT

By the resolution of the Cabinet of Ministers on March 10, all imported goods and equipment under construction project in steel production are exempt from involvement in value-added tax.

The government's decision was taken on the proposal of JSC "Azerbaijan steel production complex," which had been agreed with the ministries of finance, taxes, justice, economics, industry, and the State Customs Committee. It will be in force until 1 January 2019.

The project to build a new steel complex, including all stages of steel production - from iron ore mining to manufacturing the final product - began with the establishment in April 2013 of a new state-owned enterprise with capacity of not less than 1 million tons per year.

It should be noted that this year the government was requested to review the list of public investment projects. However, in all probability, this project has not been excluded from the list of priorities for government investment. The cost of the project is not reported. However, we are talking about hundreds of millions of US dollars.

The project consultant is Marubeni Corp., which also organizes the procedure for attracting general contractor for construction of the industrial enterprises of CJSC Azerbaijani Complex for Production of Steel in the Ganja region. ------08B