Government Increases Tax Burden for SOCAR

According to the draft state budget of Azerbaijan for 2017, tax payments forecast for SOCAR is set at 1 billion 280 million AZN, 40 million AZN or 3.2% more than the forecast for 2016. This was reported on the website of the Ministry of Finance of Azerbaijan.

In general, the tax from SOCAR should provide 8% of budget revenues next year.

In 2016 the plan for SOCAR on tax payments to the state budget is set at 1 billion 240 million AZN. At the end of eight months of this year SOCAR already paid to the state budget more than 900 million AZN, while the average export price of Azeri oil was $ 42.55 per barrel.

In 2015, SOCAR paid taxes in the amount of 1,480,195,000 AZN to the state budget, when the average export price of Azeri oil was $ 54 per barrel.

It should be noted that SOCAR paid a record amount of taxes to the state budget by the end of 2014 - 1.825 billion AZN with an average oil price of $ 104 per barrel.

Comparison of prices for oil and SOCAR’s total investment expenses abroad and in the domestic market shows that this year the government simply withdraws funds from SOCAR to replenish the state budget. At the same time, the government makes every effort to help SOCAR: if necessary, it allocates funds from the state budget to increase the size of the authorized capital, as well as provides support for the financing of major projects. –12B--