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Enter Main - TURAN.AZ AZ ... RU

Economical news
Bulletine Economics 

2017 October 20 ( Friday )  17:35:25
Print version
Русский Azərbaycan


AZAL to Receive Subsidies in Amount of AZN 10 Million in 2018

Baku / 21.10.17 / Turan: The draft budget for 2018 promulgated the volume of subsidies allocated to the Baku Metro and Azerbaijan Hava Yollari CJSC (AZAL).

So, next year the above organizations will receive a subsidy from the state budget in the amount of 89 million manat and 10 million manat respectively.

For our part, we note that if subsidies for the subway are understandable, since maintaining low prices for fares in the metro is of great social importance, then subsidies for AZAL are surprising. Turan has previously written that the national air carrier is considered one of the most expensive ones in the world for passengers

In addition to air travel, it also controls the airport, where prices for other airlines are not the cheapest in the world. At the same time AZAL is one of the major tax debtors. In early 2017, after a financial amnesty, AZAL's tax debt was written off in the amount of 14,475,000 manat. If at the current high prices, airport fees and taxes for servicing, AZAL, instead of its contribution to the state budget in the form of taxes, receives subsidies from it, it is logical to assume that there is a big problem in the company"s management. -71D-

If You Are So Transparent, Make Public Your Tax Payments

Baku / 20.10.17 / Turan: The Ministry of Taxes has published a list of taxpayers acting on the basis of the Transparent Tax Partnership. The list only mentions 454 of the 860,000 taxpayers registered in the country Some experts are not supporters of measuring transparency only by the level of reporting to official structures. They also suggest that a transparent taxpayer should also be accountable to the citizen.

Who is the Green Corridor of the tax service for?

In service centers, a taxpayer who received the status of a Transparent Tax Partner will be serviced on the basis of the Green Corridor principle - out of turn and promptly. Companies and individuals applying for this status should submit tax reports in full and pay taxes in full in a timely manner, correctly declare the number of employees and the wages they receive. Among the conditions for obtaining this status is also the requirement to maintain accounting in accordance with international or national accounting standards, and correspondence - mainly in electronic form.

Business consultant Khayal Mammadkhanli approves these conditions created by the tax authority for exemplary taxpayers. He notes that the existence of the principle of Green Corridor in the service is an incentive for other taxpayers to raise business standards. However, he believes that the "transparent taxpayer" is a broader concept, and it would be even better if the applicants for this status informed the public about the taxes paid as well.

Increase in the Tax Culture Requires Competition

"From the practice of many countries it can be seen that in order to stimulate commercial entities that are more disciplined and pay more taxes, the state encourages them in various forms, which also leads to an increase in the social prestige of companies that have achieved success in business. True, public organizations and business structures organize various nominations, but among them there are no such nominations as payments to the state budget, or "the company that has opened the largest number of jobs within a year." Very few local companies and those with foreign capital present a report on paid taxes to the society. To increase tax culture it is highly desirable for taxpayers to have such a useful competition," Mammadkhanli told Turan News Agency.

The chairman of the Promoting Economic Initiatives Company Azer Mehdiyev considers the issue of companies' transparency "largely controversial" from the civil position.

Azer Mehdiyev: "For a private company, this is a voluntary matter"

"This is clear in relation to state companies and organizations. The fact that in this connection the citizen demands transparency from them and the publication of reports is understandable, but there are many controversial issues related to private companies. Disclosure of the amount of tax payments for the company may be a voluntary matter. The identification of tax evasion and prevention of this is within the competence of state structures.

The publication of financial statements by companies is the main condition for the transparency of their activities. And at best, large companies or joint-stock companies do it."

By law, tax payments represent the secret of the company.

The Tax Code specifies that certain information about a taxpayer, including his tax debt, is not secret. However, there is no such provision for the amount of tax payments. In other words, the amount of tax paid to the state budget is considered a tax secret.

Currently, 0.05% of taxpayers can pass through the Green Corridor. Among these taxpayers, mainly representing foreign capital, there are more than 40 oil-producing and service companies operating in the oil and gas sector, air carriers, consulting companies, banks and hotels, and 55 individuals. -0-

Growth of Non-Oil Sector by 3% Does Not Affect State Budget

Baku / 20.10.17 / Turan: The revenues to the state budget for the first nine months of this year exceeded the indicator of the same period of last year by 1.9 billion manat. At the same time, the budget revenues from the non-oil sector decreased by 18 million manat, the economist Rovshan Agayev said on his Facebook page.

It is estimated that AZN 1,040 million of budget growth accounted for transfers from the State Oil Fund, AZN 316.5 million came from oil sector transfers, AZN 250 million came from transfers from the Central Bank, and AZN 297 million came from the customs system.

This means increase in the price of oil by only $ 10 was enough to ensure that the budget revenues rose by 1.5 billion manat. At the same time, according to official statistics, the non-oil sector grew by 3% over the year. However, the stated growth for some reason did not affect the revenues to the state budget of Azerbaijan. -0-

Customs Plan Increased by 8%

Baku / 20.10.17 / Turan: The state budget will receive 2 billion 430 million manat from foreign trade in 2018. So the government predicts, sending the draft state budget for the next year to the parliament.

In comparison with this year, customs officers will have to raise AZN 180 million or 8% more customs duties and taxes. In the summer of this year, the state budget was revised and the plan for the State Customs Committee was raised from 2.2 billion to 2 billion 250 million manat.

In 2018, the share of revenues to the state budget from foreign trade operations is projected at 12%.

Independent experts point out corruption in the customs system and serious evasion of payments for customs operations. At the same time they refer to the data of the main trade partners of Azerbaijan. ---08B--

Number of Buses Purchased Abroad Doubled

Baku / 20.10.17 / Turan: For the first nine months of this year, 138 minibuses and buses for transportation of passengers on inland and intercity routes have been delivered to Azerbaijan, more than double the indicator for January-September 2016.

According to the State Customs Committee, since the beginning of the year, 5,783 cars have been purchased for sale and personal use by official representatives and dealers, as well as private individuals. This is 70% higher than the figure for the same period last year.

Total taking into account cargo and special vehicles, from the beginning of the year Azerbaijan has purchased 6,643 vehicles abroad, which is 70% more than in January-September 2016.

In 2016 it was announced that assembly of Belarusian buses will be carried out in the Gandja Automobile Plant. The Nakhchivan and Shamakhi automobile plants, which assembled Chinese and Iranian automobile models, suspended their activities. At present, the newly-built Neftchala Automobile Plant is also planning to assemble Iranian old-style passenger cars. -----08D

Import of Goods Exceeded Last Years Figure

Baku / 20.10.17 / Turan: For nine months of this year, goods from abroad were supplied to Azerbaijan for a total of 6 billion 177.6 million US dollars, which is 0.3% more than for the comparable period of the previous year, the State Customs Committee reported.

In total for three quarters of 2017 the volume of foreign trade operations of Azerbaijan with 187 countries of the world amounted to $ 14 billion 321.5 million, which is 8% less than in January-September 2016. During this period, exports of goods amounted to $ 8 billion 143.9 million. This is $ 1 billion 255 million, or 13.4% less than a year earlier.

In general, Azerbaijan's foreign trade balance remains positive (+ $ 1 billion 966.3 million).

According to foreign trade operations, 1 billion 951.6 million manat has been transferred to the state budget since the beginning of the year. ----08D

Parameters of State Budget of 2018 Published

Baku / 21.10.17 / Turan: The income of the state budget of 2018 will make 20 billion 127 million manat, and the expenses will be 20 billion 905.7 million manat.

This was announced by MP Vahid Ahmedov. According to him, the deficit of the state budget is forecasted at the level of 778.7 million manat.

The MP noted that according to the decision of the Milli Majlis, the centralized income will amount to 19 billion 476.329 million manat, and the local income will be 650.671 million manat.

The centralized expenses were approved at the level of 20,181,608,000 manat, and the local expenses were approved at the level of 724,092,000 manat.

The projected structure of the state budget revenues includes 1.196 billion manat from taxes of individuals, 2.320 billion manat of enterprise profit tax, 4.288 billion manat of VAT, and 1.705 billion manat of VAT on imports of goods into Azerbaijan.

In addition, there is projected income of 380 million manat from the simplified tax, 726 million manat from excises, 172 million manat from excises for the import of goods, 91 million manat from road tax, 136 million manat from field tax, 535 million manat from customs duties, 6.3 million manat from the sale of excise stamps, 108 million manat from the state duty, 460 million manat from paid services of state organizations, and 140 million manat from the tax authorities.

At the same time, expenditures on state services are expected at the level of 3 billion 620.257 million manat, including 654.946 million manat for the maintenance of legislative and executive bodies, 215.1 million manat for membership fees in international organizations and international activity, 128.060 million manat for science, 2 billion 262.778 million manat for servicing public debts and liabilities, 281.9 million manat for subsidies to the budget of Nakhchivan Autonomous Republic, 2 billion 738.722 million manat for defense expenses, 1 billion 329.535 million manat for judicial, prosecutorial and law enforcement agencies, 2 billion 1.498 million manat for education, 740.661 million manat for health care, and 2 billion 197.182 million manat for social protection.

Culture, creativity, information, and physical culture will get 304.289 million manat, housing and communal services will get 457.399 million manat, agriculture, forestry, fishing, and environmental protection will get 656.260 million manat, industry, construction and mineral extraction will get 4 billion 944.376 million manat, transport and communications will get 166.791 million manat, economic activities will get 245.511 million manat, and services that are not in the main categories will get 1 billion 495.203 million manat. -71D-

Oil Price Set at $45 in State Budget for 2018

Baku / 21.10.17 / Turan: In the draft state budget of Azerbaijan for 2018 the base price for one barrel of oil is indicated at the level of $ 45.

The draft state budget indicates that next year on world markets the average price for oil will be about $ 50 per barrel.

Recall that in 2017 in the state budget of the country the base price for a barrel of oil was indicated at $ 40, and in the first half of this year the price of Azerbaijani oil was $ 54. In 2016, in the state budget, the price of oil was indicated at $ 25, while the average price of Azerbaijani oil was $ 42. -71D-

Consolidated Budget Surplus for Nine Months

Baku / 21.10.17 / Turan: The state budget revenues for the first nine months of this year were 12 billion 045.1 million manat, and the expenses were 12 billion 783.7 million manat, resulting in a budget deficit of 738.6 million manat.

This is stated in the message of the Ministry of Finance on the execution of the state budget.

The state budget revenues for the first nine months were more than forecasted by 0.2%, which is more by 1 billion 942 million manat or 19.2% compared to the same period of the previous year.

The forecast of revenues to the state budget by the Ministry of Taxes was 100.1% fulfilled and amounted to 5 billion 224.8 million manat, which is by 298.5 million manat or 6.1% more than in the same period of the previous year. The non-oil sector accounted for 73.2% or 3 billion 825.8 million manat of budget revenues.

The State Customs Committee fulfilled the forecast by 117.8% and provided revenues to the state budget of 1 billion 950.4 million manat, which is 296.6 million manat or 17.9% more, compared to the same period of the previous year.

Transfers from the State Oil Fund to the state budget amounted to 4,300.0 million manat.

Receipts from paid services of state organizations were at the level of 246.7 million manats, and other revenues were 323.2 million manat.

The forecast of state budget expenditures for the first nine months of this year was fulfilled by 100.7%, which is more by 2 billion 161.5 million manat or 20.3% compared to the same period of the previous year.

Revenues of the consolidated budget amounted to 17 billion 586.9 million manat, and expenditures were 16 billion 972.4 million manat, resulting in a surplus of 614.5 million manat. -71D-

Assets of State Oil Fund Increased by 0.55%

Baku / 21.10.17 / Turan: As of October 1, 2017, the assets of the State Oil Fund of Azerbaijan (SOFAZ) increased by $ 2.873 billion, or 8.7%, to $ 36.02 billion, as compared to the beginning of the year.

In comparison with the same period last year, SOFAZ assets grew by 198 million dollars or 0.55%.

This is stated in the message of SOFAZ.

The budget revenues of SOFAZ in January-September of this year amounted to 8.793 billion manat, and the expenses totaled 6,911.7 million manat.

Over the reporting period, SOFAZ's revenues from the sale of oil and gas contracts amounted to 7,976.7 million manat, including revenues from the sale of profitable oil and gas - 7,957.8 million manat, bonus payments of 2.4 million manat, transit revenues - 12.9 million manat, and acreage payments - 3.6 million manat.

SOFAZ's revenues from managing its own funds for January-September amounted to 816.7 million manat, and off-budget revenues of the Fund from the exchange rate difference for the first nine months - 582.4 million manat.

Transfers to the state budget amounted to 4.3 billion manat. Expenses for measures to improve the social status of refugees and IDPs amounted to 82.5 million manat, financing of the reconstruction project of the Samur-Absheron irrigation system - 39.5 million manat, financing the implementation of the state program for 2007-2015 to train Azerbaijani students abroad - 11.2 million manat, and transfers to the Central Bank of Azerbaijan in order to ensure macroeconomic stability of the country amounted to 2.448 billion manat.

The expenses for managing the Fund in January-September amounted to 13 million manat. -71D-

Turan Bank Completed Third Quarter at Loss

Baku / 21.10.17 / Turan: The assets of Turan Bank increased by 14 million 644 thousand manat or 2.9%, amounting to 525 million 655 thousand manat in the third quarter of 2017 as compared to the same period of the last year.

The liabilities of the bank for the reporting period amounted to 466 million 215 thousand manat (an increase of 12 million 607 thousand manat or 2.8%).

The volume of customer deposits reached 251.835 million manat (an increase of 21 million 104 thousand manat or 14%).

The bank"s capital for the mentioned period increased by 5 million 038 thousand manat or 9.3%, making 59 million 441 thousand manat.

In the third quarter, the loss of Turan Bank was 379,000 manat.-71D-

Guarantor Arrested for Loan Debt in Azerbaijan

Baku / 21.10.17 / Turan: A guarantor of a person who took a loan in a bank was arrested for 10 days by the court in the Sabunchu district of Baku, the head of the Anti Collector Company Akram Hasanov wrote on his Facebook page.

The arrested is an employee of CJSC Azerbaijan Railways Lala Bunyadova. She vouched for a person who took a loan from Ata Bank.

Hasanov noted that the court for some reason did not establish the place of her work and pointed out Lala Bunyadova as unemployed. The court could deduct the loan debt from her salary.

"Lala Bunyadova learned about the court's decision 13 days before her arrest. Before that, she had not been sent a single document," Hasanov wrote. He noted that the amount of the debt is 8,701 manat and the defense will file a complaint with the court of appeal.

Recall that the problems with the return of loans in Azerbaijan began after two devaluations in 2015. At present, the volume of problem loans is 1 billion 824 million manat, and, according to experts, every fourth citizen is in arrears with banks.

Hasanov previously wrote that Azerbaijan is the only country in Europe where debtors can be arrested by banks. He lodged a complaint with the European Court of Human Rights. The European Court in turn gave the government time until January 16, 2018 to provide their views on this matter. -71D-

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