BAKOU, Azerbaijan, November 25
By Elchin Mehdiyev – Trend:
Amendments to the Tax Code related to agriculture in Azerbaijan will create a basis for lowering the prices of agricultural products produced in the country, Trend reports.
According to reports, one of the next proposed changes to the Tax Code to reduce the tax burden of entities and stimulate entrepreneurship activities are changes aimed at reducing the cost elements affecting the cost of agricultural products, and thus create an economic basis for reducing prices in the domestic market.
Thus, it is proposed to impose VAT from 1 January 2022 only on the commercial surcharge for the wholesale and retail sale of agricultural products for three years, as well as to exempt from VAT the supply of leased agricultural machinery. operational and agricultural services related to the production of agricultural products.
The first change in this direction is the imposition of VAT throughout the sales chain of agricultural products on the applied commercial value added, and not on the full value of these products. Since, in the current situation, the agricultural products purchased from the manufacturer were purchased under a VAT-exempt transaction, the subsequent sale of these products was subject to VAT at the current rate of 18.
As a result of the proposed change, a basis will be created to lower the prices of domestically produced agricultural products, since VAT will be charged on the commercial value added of these goods.
The second change in this direction is the exemption from VAT of the elements of VAT costs on the production of agricultural products (exemption from VAT of agricultural services provided to agricultural producers and the provision of rental (rental) of agricultural machinery. to these) will lead to a fall in the cost of agricultural products, which will affect prices.
It is noted that the amendments were put to the vote at a meeting of the Milli Mejlis (parliament) and adopted at second reading.