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Vusal Gasimli: Changes to Tax Code encourage entrepreneurs to legalize their business

07.04.2020,12:12


April 7, Fineko/abc.az. When comparing reports submitted by entrepreneurs to tax, statistical, and other governmental agencies, as well as when comparing household income and expenditures, you can see the contours of an "unobserved economy".

ABC.AZ reports that the statement was made by Vusal Gasimli, the executive director of the Center for Analysis of Economic Reforms & Communications.

According to Gasimli, as a result of the effective struggle of tax and customs authorities with the shadow economy in 2019, the country’s budget received an additional AZN 1 bn above the forecast. Gasimli noted that the share of the economy not observed in Azerbaijan in GDP is 8.7%, according to official data: "The analysis of the use of income remaining at the disposal shows that the amount of annual savings in the country is AZN 20-25 bn. That’s why, although it is difficult to make an accurate estimate, it can be said that there is a potential for legalizing a significant amount if an amnesty of capital and property is declared. In fact, the amnesty of capital and property can become a logical continuation of the fight against the shadow economy. In particular, changes in the Tax Code encourage entrepreneurs to legalize their business in stimulating and administrative ways."

By Elmir Murad