TODAY.AZ / Business

SOCAR’s tax debt stands at 189 million U.S. dollars

18 June 2005 [09:14] - TODAY.AZ
The State oil company of Azerbaijan (SOCAR) has to pay off the remaining 900 billion manats (189 million U.S. dollars) in its tax debts, including fine increments.
The present figure composes only 15 per cent of the company’s aggregate debts of 6 trillion manats (1.263 billion U.S. dollars) to the state budget for past years.

Following the announcement, minister for taxes Fazil Mammadov told a press conference that SOCAR would likely sink the remainder of its tax debts by the end of the year.

In respect of current payments, the minister stressed that they had been paid in full as of Q1 2005.

Mammadov added that other state companies, like Azerenerji and Azeriogaz, also faced problems with tax payments. Azerenerji, the country’s only producer and distributor of electrical energy, and Azerigaz, the nation-wide gas supplier, both complained of low rate of payments – 30 to 40 per cent of the required amount total - for the consumed commodity they supply. With this problem, still pending its solution, Azerenerji and Azerigaz have no opportunity to pay taxes back, except for relying on part of the amount of state subsidies, which are to compensate sales-below-cost operation of these companies.

The minister said that the previous practice of control over debt settlements – setting up a schedule of payments following the signing of a corresponding protocol – has been replaced by new rules, which mean nothing but incremental payments fined per day of delay.


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