Azerbaijan to write off debts on compulsory social contributions


February 20, Fineko/ The Parliamentary Committee on Labour & Social Policy discussed the Bill on regulation of compulsory social insurance debts.

Deputy Minister of Labor & Social Protection of Azerbaijan Idris Isayev stated during the discussion that the Bill is designed for development of entrepreneurship, as accumulated debts create problems for it.

"Compared to 2003, revenues on compulsory social insurance increased by 9.4 times, but there also accumulated debts on contributions, which by 1 January 2018 exceeded AZN 364 million, including AZN 282.6 million of the main debt and AZN 81.8 million of sanctions and fines. At the same time, debt writing off will hardly affect the pension security process," the deputy minister said.

The Bill, recommended for discussion at plenary session, envisages writing off of the financial sanctions accrued prior to 1 January 2006 and not paid until 1 April 2015. In case of payment of 10% of sanctions (penalties) for April-May 2018, 90% of accumulated debts will be written off, 30% of debts for April-July – 70%, 50% for April-September – 50%.