Mikayil Jabbarov: Simplified Tax Rate to Be Reduced to Two Percent

Baku / 16.11.18 / Turan: The Ministry of Taxes presented the draft amendments to the Tax Code to the Parliament, which provides for a reduction in simplified tax from 4% to 2%, Minister of Taxes Mikayil Jabbarov said on the program "Pulse of the Day" on AzTV.

He said that currently the relevant committee of the parliament is considering changes, and next week the project will be discussed at the plenary session of the Milli Majlis.

The Minister noted that currently there is an abuse of the simplified taxation system and therefore the circle falling within this system will be simplified.

Speaking about other planned changes, the Minister said the most important of them is the use of tax incentives for citizens working in the non-oil sector.

The Minister said the proposal is a sharp reduction in interest rates of taxation from wages.

"The income tax of 14% in relation to citizens receiving up to 8,000 manat is annulled, and in relation to citizens receiving more than 8,000 manat, the income tax decreases from 25% to 14%," the Minister said.

According to him, the state thus provides citizens with great benefits.

"The state deliberately goes to such reforms, which, on the one hand, will reduce its revenues, but on the other hand, these reforms will reduce the share of the "shadow economy". Such privileges are the result of decisions at the highest political level," M. Jabbarov said.

The Minister also said the changes provide for tax breaks for those who use the system of non-cash payments in retail. -71D-