Municipalities Cannot Cope with Collection of Taxes

In the first half of this year, revenues of the budgets of local authorities in Azerbaijan amounted to AZN 16.7 million, up 23% over the comparable period of 2011.

However, municipalities can not cope with the collection of two municipal taxes: property and land to individuals. The share of non-tax revenue to municipal budgets is 63%. With about 41% of the budget of the community formed by the sale and leasing of municipal land. This trend is especially seen in the regional municipality, told Turan expert NGO "Center for Economic Research," Rajab Imanov, commenting on the budget process in local government

According to him, despite the potential, the share of revenues from the management of municipal property taxes from the daily parking lots, hotel and resort fees are still low.

Companies or persons operating the field of building materials listed in the local budgets of municipalities 244 thousand manat, which is 1.8 times more than in the first half of 2011.

The fact that municipalities in Azerbaijan found their rightful place in the public administration system is evidenced by the fact that exactly half of the funds raised are directed to the maintenance of their vehicles. The remaining funds are used for housing, transportation, communication needs, as well as the repair of roads.

Local experts and the Congress of Local and Regional Authorities of the Council of Europe claim that the system of local governance in Azerbaijan does not meet the requirements of the European Charter of local government.

The total budget of 1,718 municipalities in Azerbaijan is only 0.2% of the state budget. State subsidies to municipalities are scanty - AZN 3.5 million a year. Experts believe that the municipalities in Azerbaijan are an appendage of local governments, which control almost all the vital areas of the local level. - 08B-