Whether the president violated the Tax Code?

On 14 January, the Ministry of Economy and Industry (MEI) has distributed information about the release of the import and sale of wheat and wheat flour and wheat bread from VAT, which will lead to lower prices for them. However, experts point out that this decision was taken in violation of the law. The report of MEI noted that the decision was made on the orders of the President of Azerbaijan. It is not reported what was decided to do. The fact is that from the 1st January 2016 decision on tax exemption can be taken by the legislature of the country. Prior to that, this power belonged to the Cabinet.

A lawyer Alaif Hasanov believes the state should not be controlled by oral instructions of the officials. "There is a law and legal solutions have to be found within them. In this case, the Milli Majlis was convened an emergency meeting and make amendment to the Tax Code," Hasanov said.

VAT exemption on the import and sale of wheat and bread works in favor of the population. At the same time it must be taken into account  that in the future restricting the rights and freedoms of citizens may be adopted, said the lawyer.

In January-November 2015 the volume of wheat imports to Azerbaijan amounted to $276 million. If this rate will continue this year, the state budget would not receive about $50 million in  the form of VAT. 08B