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-
Economics
-
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.
-
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."
-
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.
-
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.
Leave a review