Azerbaijan news

Can the abolition of VAT prevent the increase in food prices? – DISCLOSURE |

Member of Parliament Unit Ahmadov that value added tax (VAT) should be added to food products by 1-2 percent offer did. Deputy National At the meeting of the economic policy, industry and entrepreneurship committee of the Majlis on September 19, he said that it is not right to apply 18 percent VAT on everything, and that the tax should be differentiated. “In the current situation, the government imports food products customs should not apply the tax,” he added. Deputy Tahir Mirkishili emphasized that the abolition of VAT in Turkey did not affect the price increase, on the contrary, the state also lost that tax.

Economist-expert who made a statement on the issue Fuad Ibrahimov pointed out that in a completely transparent, competitive market, if VAT is suddenly removed from the product, the price will drop by 18 percent immediately:

“But that’s just how it goes in math. That’s why I agree more with Tahir’s views. Because we have a different problem. Even after all costs added to the invoice price of imported products, there is an unspecified margin of 30-40 percent in the product. rise in price there is This is a price spread created on the deal (the difference between the best prices for the sale and purchase offers of any asset (stock, product, currency, futures, options) at the same time – ed.), it is impossible to prevent it.

The expert noted that today any product To Azerbaijan import can be calculated as:

The expert noted that today any product To Azerbaijan import can be calculated as:

Customs when we add duties, other taxes, logistics costs of the importing company, we see that there is 30-40 percent uncertainty in the price of some products. Where that income goes, by whom it is appropriated – should be investigated.

Today, at least eggs, chicken, bread products are exempt from VAT, are we seeing a reduction in their prices? No, on the contrary, growth continues. Therefore, reducing VAT to 0 percent is the solution way won’t happen. If you do not think about it, we also charge VAT cancellation if we do, then from the budget Salary and we will create problems for other sectors that receive scholarships. Thus, our budget revenues will decrease. That is, if we do not have healthy competition, it will not be possible for prices to fall. Those forces will use 18 percent as additional income.” (Oxu.az)

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