Rules for Assessing Effectiveness of Tax, Customs Incentives Approved

Baku / 05.11.20 / Turan: The Cabinet of Ministers approved the "Rules for assessing the effectiveness of tax and customs benefits" on November 3. This assessment will be taken into account when determining the main directions of budgetary and tax policy in the medium term.

Over the past few years, a number of tax and customs benefits and exemptions have been identified to encourage investment in the non-oil sector, stimulate export-oriented production and protect the domestic market. According to a new government document, information sources for assessing the effectiveness of benefits are classified according to some parameters. The following indicators are used to assess the budgetary, economic and social effectiveness of benefits:

- Budget loss calculated on the basis of the concession;

- Taxes and other compulsory payments to the state budget by type of economic activity and taxpayers enjoying benefits;

- The number of persons using the discount;

- Such indicators of economic efficiency as value added, costs, GDP deflator index in the sphere of economic activity, turnover from the provision of goods (works, services), profit / loss, volumes of debts, import and export of goods and services, average annual property value (including investments in fixed capital). Social performance indicators will be the number of employees and the payroll.

To assess the economic and social efficiency of benefits, at least 3 indicators are used, depending on their type and scope of economic activity.

The Ministry of Finance maintains the Centralized System of Electronic Register of Tax and Customs Benefits. The register is not open to the public.   ------08D--