Azerbaijan to take steps to encourage non-cash payments

In 2011, Azerbaijan is expected to implement a series of activities to enhance the use of cashless payments, Parliamentary Economic Policy Committee Chairman Ziyad Samadzade said at a meeting of Caspian-European Integration Business Club (CEIBC).

"The Committee is now actively involved in the preparation of amendments to the country's Tax Code, which will aim to help business, increase the effectiveness of fiscal policy and improve tax culture. The amendments to the Tax Code will also consider tax incentives to encourage non-cash payments," Samadzade said.

The country plans to expand the use of card payment, in this connection will be increased penalties for violations.

"Major changes are expected in 2011 and serious work is done by the Central Bank," he said.

Azerbaijan prepares a number of activities encouraging the development of cashless payment system, Deputy Taxes Minister Natig Amirov said earlier. "It is expected to reduce tax rates on non-cash transactions and hold incentive lottery," Amirov said.

A state program on improving and developing modern electronic payment services in Azerbaijan was confirmed in accordance with a presidential decree on Dec. 9, 2004. The state gave an impetus to favorable opportunities to carry out large-scale reforms in the development of modern payment services. Since the adoption of the program, Azerbaijan has succeeded in improving the plastic card markets by distributing pensions and different benefits and allowances through plastic cards, as well as the wages of budgetary organization employees.

Currently, the Central Bank of Azerbaijan (CBA) is developing a new strategy for the development of payment system, whose main goal is to create conditions and encourage the broad masses of the population to use e-payment instruments. Under the new program, the CBA plans to implement activities to educate consumers that also have a positive impact on the widespread use of POS-terminals in the country.

Based on the CBA data, as of late December 2010 there were 4,231,000 units of payment cards, which is 6.5% over late 2009.


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