“Of course, Azerbaijan has faced certain difficulties and certain challenges regarding and oil price decline and instability in the world. The main issue is that Azerbaijani government and relevant bodies should form how they will respond to these challenges while fulfilling their obligations”, said the World Bank Country Manager for Azerbaijan Larisa Leshchenko at the two-day 4th Tax Forum on Azerbaijan’s tax system: realities and perspectives in Baku.
“In this circumstance, the Ministry of Taxes and other ministries should take measures to respond the relevant challenges. WB forecast says that today’s challenges and the challenges that Azerbaijan faced will last not one day. Therefore, we think that various programs, fiscal consolidation, search of new source for revenues are important. This may compensate the loss which oil incomes faced”, she said.
According to her, the bank forecasts oil price to be at $53 a barrel this year, $57 next year. Taking this into account, Leshchenko recommended Azerbaijani government to extend the taxation base.
“The main indicator in this sphere is the growth of non-oil sector. We know that non-oil sector increased 9-10%. At the same time, this sector’s incomes/GDP ratio is decreasing. Therefore, there is a need for new approaches in non-oil sector, new institutions should be established. According to WB indicators, Azerbaijan achieved successes in taxation sphere. There are some sectors that do not pay tax. This has negative impact on both tax and market participants. I believe that these sector will be involved in tax system”, she said.
WB: Azerbaijan should extend taxation base
09 February 2015
Read: 873
