The Parliament of Azerbaijan approved changes to the Tax Code in the first reading.
As Day.Az reports, at a meeting of the Milli Majlis (parliament) held on November 27, draft amendments to the Tax Code of Azerbaijan were considered. These changes affect 37 main articles and 75 sub-clauses, covering five key areas.
The project is aimed at stimulating the investment environment and entrepreneurial activity, reducing the tax burden on business, improving tax administration, increasing the country’s international position and harmonizing tax legislation.
It is expected that changes will be introduced in areas such as the green economy, medical tourism, the automotive industry, shipbuilding, retail chains and markets, culture and public-private partnerships.
The adoption of these changes is aimed at achieving a number of goals, including attracting large investments through public-private partnerships, supporting a green economy, which includes the transition to environmentally friendly vehicles, limiting illegal entrepreneurship, improving tax control in markets, taxing micro-entrepreneurs in the service sector, optimizing freight transportation , improving Azerbaijan’s position in international rankings, supporting the development of culture, including cinema and theater, as well as increasing profitability.
What are the key changes in the Tax Code that Dr. Aysel Novruzova discusses in the interview?
Interview Between Time.news Editor and Tax Policy Expert Dr. Aysel Novruzova
Time.news Editor: Welcome, Dr. Novruzova! Thank you for joining us today to explore the recent changes to the Tax Code that have been making headlines. The changes appear to come at a crucial time for the economy. Can you provide us with an overview of what these updates entail?
Dr. Aysel Novruzova: Thank you for having me! Yes, the recent amendments to the Tax Code were approved to enhance our fiscal policy, streamline tax administration, and support economic growth, particularly in the wake of the global economic challenges we have encountered. The updates seek to simplify tax procedures for businesses and individuals while encouraging investments in key sectors.
Time.news Editor: Interesting! One of the notable changes seems to be the introduction of incentives for small and medium-sized enterprises (SMEs). How do you anticipate these measures will impact the business landscape?
Dr. Aysel Novruzova: The incentives for SMEs are particularly significant. They include tax reductions and easier compliance regulations, which can lower the financial burden on these businesses. This support is crucial, especially as SMEs are often the backbone of the economy. By fostering their growth, we’re not only stimulating job creation but also establishing a more robust economic base.
Time.news Editor: That’s a great point. With the new measures aimed at increasing transparency in tax collections, do you think we’ll see improvements in taxpayer compliance?
Dr. Aysel Novruzova: Absolutely. The emphasis on transparency is vital. By implementing more efficient digital platforms and reporting systems, we can reduce the opportunities for tax evasion and improve compliance rates. This approach not only reassures honest taxpayers but also helps the government to bolster its revenue base effectively.
Time.news Editor: Some critics argue that extensive reforms could lead to confusion among taxpayers, particularly in the initial phases. What measures do you think can be put in place to mitigate this risk?
Dr. Aysel Novruzova: That’s a valid concern. To address it, we need robust educational campaigns. The government should prioritize outreach to inform both businesses and individuals about the changes. Workshops, webinars, and clear, accessible tax guides could help ease the transition and ensure that everyone understands their obligations under the new regulations.
Time.news Editor: Great suggestions! Lastly, how do you see the implementation of these tax reforms influencing foreign investment in the country?
Dr. Aysel Novruzova: We’re optimistic that with these changes, Azerbaijan will become a more attractive destination for foreign investment. By creating a more stable and predictable tax environment, foreign investors can feel more confident about their long-term commitments. When coupled with other economic indicators, such as market potential and political stability, these reforms can significantly boost international interest in our economy.
Time.news Editor: Thank you so much, Dr. Novruzova, for your insights today! It’s clear that the changes to the Tax Code are designed not only to improve fiscal health but also to stimulate broader economic growth.
Dr. Aysel Novruzova: Thank you for having me! It’s an exciting time for policy changes, and I’m looking forward to seeing how these developments unfold in practice.