Azerbaijan might facilitate tax regime for oil and gas companies

Facilitation of tax regime might be applied in the future to the companies, engaged in oil and gas sphere in Azerbaijan, said vice speaker of Milli Medjlis, chairman of the parliamentary commission on ecology, natural resources and energy Valeh Aleskerov at a session of the Caspian business integration club on Friday, according to Interfax-Azerbaijan.

"Foreign companies work in oil and gas sector of Azerbaijan on the basis of contracts. Therefore, it depends on contracts to be held in the future", said Aleskerov commenting Friday on Kazakhstan's intention to use this tax regime due to the global economic crisis.

He said definite facilitation of norms for activity of the companies engaged in oil and gas sector, are fixed in the draft law "On application of a special economic regime to oil and gas activity, intended for export", presented for adoption during the second reading in Milli Medjlis.

"This law also opens new opportunities for the non-oil sector as it envisions release of VAT and customs duties of the subcontractors of oil and gas contracts, regardless of whether they conduct construction works or provide services", noted Aleskerov.

The vice speaker speaking at the "round table", organized by the Caspian integration club on Friday, noted that the draft law is planned to be discussed and adopted in the second reading at the first meeting of the spring session of Milli Medjlis to be held on February 2.