Aflatun Babayev: "Payment of wages in "black cash" in Azerbaijan is connected with the public insurance law"

"The decrease or increase of tax rate leads to reduction or increase in budget revenues", said editor-in-chief of Accounting magazine, expert on tax issues Allatun Babayev speaking of problems of relations between taxpayers and tax bodies.

He said in Azerbaijan, unlike many countries, tax load is mainly on legal entities, which is natural in our conditions, when over a half of the population earn so little money that it hardly meets the minimal demands of their families.

"It can not be said that we have high rates of income tax. Another issue is the effectiveness of collection of this tax. It is not collected too well. For example, tax bodies, despite numerous campaigns, are still unable to ensure full payment of taxes even by individuals, who are engaged in creative activity (primarily, singers)", said Babayev.

According to him, another global problem in this issue is the repayment of wages in "black cash", but this problem is more connected with the legislation on public insurance.

"Until employers are bound to transfer about 22% of wages to the state fund of social protection (3% of social insurance deduced from employees) and to make transfers to the state fund of social protection for settlement of social issues of employees there will be no progress in this issue.

/Day.Az/