PwC: Offshore Zone Required, Regional Agriculture Should Be Released from Taxes

The international financial institutions offer to return to the creation of offshore zones in Azerbaijan, which will attract additional capital.

A representative of the auditing company PwC Azerbaijan Rizvan Gubiyev, speaking at the fifth annual conference "Development and implementation of the tax system" in Baku, suggested that in the case of the creation of an offshore zone, businesses registered in the country, but working abroad, should not be imposed any taxes. By the way, the current law allows it, but the issue has not yet been clarified, and the mechanism is not running.

According to the company's research, the most successful tax concept at starting economic development is based on the transfer of the tax burden from business to consumers. "That is, we propose to reduce the rate of VAT, income tax and property tax for businesses and increas the tax in consumption, which will stimulate domestic and foreign investment and increase export activities, and so on.

According to him, there should be administrative tax reforms and also reforms to separate tax rates, depending on the region and the economic activities. Differentiation is necessary here. And yet, to increase the level of investment in the periphery, dividends of regional businesses should be released from tax or there should be exemptions applied to them, since it is not right to equate their capability with the production concentrated in the capital. First of all, it concerns the sphere of agricultural industry, including the food industry. --17D-