nidavh.org

nidavh.org

The decision of the Tariff Council to increase fuel prices from December 3 is unreasonable and unlawful, said Intigam  Aliyev, head of the Legal Education Society. According to Article 94 of the Constitution, the basis for financial activities, issues related to taxes , duties and fees are determined by Parliament.

According to Article 95 of the Constitution , the approval of the state budget and supervise its execution also within the competence of Parliament. However, the decision of the Tariff Council is contrary to the principles of the Constitution .

According to the law on natural monopolies , the regulation of prices (tariffs ) is only possible in order to encourage improvement of quality goods and services and meet the needs of society. When making decisions about changes in tariffs, there should be taken into account a range of factors - the cost of production and sale, the quality and quantity of goods and the needs of consumers.

Additionally, when raising prices, it is important to take into account measures of government subsidies and assistance to poor people.

According to Article 4 of the law on regulated prices, regulation is possible to stimulate the development of a market economy, the priority sectors of the economy, encourage investment, improve the efficiency of the use of natural resources, take into account domestic and international prices, economically justified costs for production , etc.

However, the latest decision of the Tariff Council does not appear to be economically justified. The price of gasoline in Azerbaijan is much lower than in other countries because the level of salaries and pensions in Azerbaijan is lower than in developed countries.

The unreasonable hike in the prices took place in an environment where the world market oil prices are decreasing.

According to Article 10-1 of the law on natural monopolies, relevant stakeholders should announce the envisaged rise in prices a month before. Tariff Council shall also inform the public in advance of the proposed measures .

"Azerbaijani society is antisocial . However, this solution will be consequences . We must protest the government's decision last and engage in this process as much as possible people. People need to clarify that the extension of the life of this government condemns each of us and all of society to new ordeal," said Intigam Aliyev . - 06V -

 

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