Government Released Wheat Imports from VAT

According to the resolution of the Cabinet of Ministers on September 24, wheat and wheat and oat flour are listed as exempt from VAT on imports into the country. The decision will be valid for one year; it is due to the trend of rising grain prices on the world market.

The government has repeatedly resorted to this step in order to control the prices of grain products in the domestic market. Azerbaijan can not cope with providing wheat to the population through domestic production. Every year the country imports an average of 1.3-1.5 million tons of grain. According to the official statistics, the domestic production of grains and legumes is 1.6 million tons a year.

In one of the companies at the forefront of the grain market in Azerbaijan, they told Turan that due to the poor harvest, grain prices soared in the world market. The Ministry of Economic Development "asked" the mills not to raise retail prices for the residual amounts of flour sold from granaries at 20 manat per 50 kg bag. With the current state of the market a bag of flour should have cost at least 26 manat, the company said.

The Kazakhstan wheat is offered at the border at $ 400 per ton now. Elimination of customs payments will let keep the domestic market around that level, according to the company surveyed.

Last time VAT on imports of wheat and flour was abolished in December 2010 and worked until 20 July 2011. -08B-