Tax "holiday" for the industrial and technological parks

In accordance with effective from January 1 this year, amendments to the Tax Code, the investment and production activities related to the establishment of Azerbaijan industrial and technological parks exempt from all taxes (other than income tax individuals) for 7 years.

Experts appraise the decision in terms of government support of the non-oil sector, but believe that this may not be enough for the private sector in the "hothouse" conditions.

Thus, a member of the parliamentary committee on economic policy Ali Masimli told Turan, in contrast to China and Indo-China experience to create special economic zones in the CIS has no prime example of successful operation of free economic zones. The absence of a positive result could be an example to Azerbaijan to learn lessons from the mistakes committed, he said. In the Azerbaijan tax "holiday" for the period 7 - pretty normal period to achieve certain results.

However, the MP said that the release of the imported equipment and technology from the VAT, tax on profits, etc. - The first step in stimulating investment for productive activities in these industrial parks. In his opinion, investors need to be protected and the "invisible hand" of government officials who want a "piece" of the idea. Ali Masimli is skeptical of the idea that the activity of industrial and technological parks in the near future a high impact on GDP growth.

 The head of the NGO "Center for Economic and Social Development" Vugar Bayramov said that to achieve the goal of doubling GDP by 2020 the GDP should grow annually at a level not less than 5.6%. In the face of declining oil production to achieve this would be difficult. According to the economist, the government has chosen the most appropriate solution to the problem, paving the way for private sector development through industrial and technological parks m favorable tax regime. "I think that in the first phase of their operation domestic investment will be sufficient, too. However, in order to attract high-tech and require the participation of foreign capital, "he said.

Recall that the effect of the tax "holiday" applies only to industrial and technology parks, which are established by the decree of the President. These three in Azerbaijan are: Sumgait chemical industrial park, industrial park and Balakhany Tech Park. The Agency of Alternative and Renewable Energy of the Ministry of Industry and Energy also has a high-tech alternative energy park. In Sumgait, a private technology park operates. - 08B-