16:04 - 10.10.2019

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October 10, Fineko/abc.az. Azerbaijan has become one of the countries with low tax burden, the Ministry of Taxes informs portal ABC.AZ.

According to the Ministry, Doing Business 2019 also says about that. Thus, in the report of this international organization Azerbaijan ranks 9th in the world on "starting a business", and 28th on "paying taxes", and the total tax rate is 40.8%. The Tax Ministry reports that despite this, the country is again undergoing reforms in the field of tax burden optimization: "According to the "State program on expansion of digital payments in Azerbaijan for 2018-20", a workgroup has been established in the Ministry of Taxes for introduction of VAT rate differentiation system.

Currently, the country is analyzing the possibilities of introduction of this system. According to experts, the differentiated introduction of VAT in medicine with a lower rate is possible after the restoration of transparent accounting of turnover in this area. Since accounting discipline has not been restored, the application of differentiated VAT rates is unlikely to have a positive impact on the development of the sector and the decline in consumer prices. In the absence of transparent accounting, the application of a differentiated VAT rate is ineffective. Joint action by the competent authorities in this area and the establishment of an electronic reporting system are needed."

By Elmir Murad