To Mitigate Negative Effects Customs Tariff Rates Subject to Reduction

The dependence of the consumer market from imported products is very high, and to mitigate the negative effects of the devaluation of the national currency (increase in inflationary pressures in the consumer market, decline in business activity) in the short term the government should take a decision to reduce tariff rates on both food and non-food products, according to independent experts.

Many food products in Azerbaijan are based on imported raw materials or semi-finished products. Sugar, vegetable oil, tea, etc. food products are practically only packaged in Azerbaijan. Therefore, the manufacturing sector is also dependent on imports. Therefore, import duties should be reduced from 15% to a minimum or a vacation time should be applied. Including VAT, the official customs tax burden on imports is up to 40%.

It should be emphasized that the customs is one of the most corrupt government agencies. In addition to official duties, entrepreneurs pay illegal fees to customs officials, which sometimes exceed the amount transferred to the state budget. Importers say that, for example, when importing goods worth 100 thousand US dollars, on a gentleman's agreement the goods are registered at a price of $ 70 thousand. In this case, the customs taxes and duties constitute not $ 35-40 thousand, but $ 25-30 thousand. And if he does not come to an "agreement", the product is registered at $ 150 thousand, and they will already require the imported to pay $ 55-60 thousand. -----08B