List of Imports Exempt from VAT Reduced

The Cabinet of Ministers adopted on November 8 a resolution number 324 , according to which , from the list of imports exempt from VAT ??a number of investment goods were reduced.

From the list of VAT exempt imported goods the following ones were excluded:

- Goods intended for the organization in compliance with the investment program of production associated with the implementation of the approved contracts for the right to manage state-owned enterprises;

- Imported goods and equipment total cost of 500 million manat for the construction of combined cycle power plants of 750 MW.

The decree was published today, November 19 and will enter into force 30 days later - on December 9.

We note that from the 1st of January next year will expire VAT exemption of imported goods and equipment for construction of SOCAR Shipyard Ltd. and the Norm cement plant.

Decision 11 on the list of exempt from VAT imported goods was taken January 31, 2005. Since then, the list has included a number of additions, and it expanded from 9 to 24 commodity groups. - 08B -