![Property tax replaced by rent](https://turan.az/resized/media/2014/main/081200086994-750-500-resize.webp)
Property tax replaced by rent
The form of levying property tax and land tax for individuals has changed. If before tax was tied to the inventory value (rate - 0.1% of the value of property), now owner of the property will have to pay the rent, depending on its area.
The innovation is backed by the presidential decree approving the amendments to the Tax Code, adopted by the Parliament on 20 June. The mechanism of the innovation has been also defined and enters into force on 1 January 2015. For housing and land there are different schemes. Property tax is levied on the housing area exceeding 30 m2, with a down-regional factor - in Baku, the tax rate will be equal to 40 kopecks per 1 m2 in excess of specified minimum, in Ganja, Sumgait and Absheron - 30 kopecks, in other cities of national significance and regional centers - 20 kopecks. For villages and settlements outside major cities the rate will be 10 kopecks.
Given the population density of the capital and the level of security of property owners, the authority may apply an additional “gentle” factor - from 0.7 to 1 and a “burdening” one - from 1 to 1.5. The commissioners questions has also been solved - from January 1, taxes on housing will be charged by the local municipalities.
Regarding land (garden plots, family farms and lands for industrial, construction, transport and other purposes), they are tied to the rate of 100 m2 of area and diversified by the region, so the size is up to 1 hectare or more. For individual metropolitan areas the tax rate is 60 kopecks per 100 m2 for plots of less than 1 ha. Each 100 m2 of metropolitan area of more than a hectare would cost the owner AZN 1.2. In Ganja, Sumgait and Absheron the rate will be 50 kopecks and 1 manat for 100 m2 (by the same rules), in the other cities and regional centers - 30 and 60 kopecks. For villages and towns outside major settlements rate will be 10 and 20 kopecks.
A separate rate is provided for commercial land - in the capital each 100 m2 to hectare will cost an entrepreneur at 10 manats, more than a hectare - 20 manat. In Ganja, Sumgait and Absheron - 8 and 16 manat, in other cities and regional centers - 4 and 8 manat, in the villages and towns - 2 and 4 manat. --17D-
Economics
-
On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
-
Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
-
Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
-
Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
Leave a review