The Azerbaijani government has proposed to extend by 5 years tax exemption for dividends on bank deposits of the population, the Minister of Taxes Fazil Mammadov. Speaking at a meeting of the Parliamentary Committee for Economic Policy, Enterprise and Industry, and the Committee on Legal Policy and State Building, Mammadov noted that these changes also apply to the income tax in the form of dividends, discounts and interest income on investment securities.
Recall that since March 1, 2016 the tax exemption of dividends on bank deposits for three years has been applied.
In addition, the government proposed to free banks from VAT payment on the transfer of distressed assets for three years.
He noted that this applies to banks with solvency problems - from the payment of VAT on the transfer of toxic and non-business assets as part of restructuring and improvement measures.
The Minister also said it is proposed for an indefinite period to free from income tax structures that provide compulsory health insurance and medical services. ---71D
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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