Income tax and VAT rates to be reduced in Azerbaijan

He said there is a plan to reduce rates on income tax by 2% and on VAT by 1%.

"Introduction of new calculations will start from 2010 after ratification of this proposal by Milli Medjlis (parliament) of Azerbaijan", noted Amirov.

According to the deputy minister, in 2009 the Ministry of Taxes will continue works to improve the tax administration and policy.

"The Minister is preparing a number of amendments to the tax legislation in 2009 budget year", noted he adding that in the near future the Ministry will continue encouraging measures for the wider application of cashless settlements.

It should be noted that currently the income tax rate in Azerbaijan makes 22% and VAT 18%.