Azerbaijan secured economic stability: finance minister

In the first half of the year, socio-economic development of Azerbaijan took place against the background of the negative influence of the global financial and economic crisis in particular,  sharp decline in world trade, reduction in lending of economy by banks and non-banking institutions, Minister of Finance Samir Sharifov said on Wednesday at a Cabinet of Ministers' meeting on country's socio-economic development in the first half of 2009.

"Azerbaijan's economy also was tested by the the world's crisis. However, in spite of adverse conditions, thanks to steps taken under orders by President Ilham Aliyev and thanks to the powerful financial and economic potential established in previous years, economic stability and ability to resist negative external influence was secured," he said.

He said state budget revenues amounted to 4.862  billion manats over the six months,.

"In accordance with your [president's] request to reduce the impact of world financial and economic crisis on Azerbaijani businessmen and to maintain competitiveness of the businesses, the government took significant steps to reduce direct taxation for them," the finance minister said.

Sharifov said in accordance with the law signed a few days ago, from 2010 the income tax for private enterprise will be reduced from 35 to 20 percent, tax on profits for companies - from 22 to 20 per cent and turnover for the business calculated under the simplified tax system will be increased from 90,000 to 150,000 manats. To reduce the tax burden for individuals, income tax will be reduced from 35 to 30 percent for physical persons and paid services of pre-schools will be exempted from VAT.

/Trend Capital/