September 26 2003, 11:17 Interfax

Azerbaijan: importers of grain are exempted from VAT

According to Azerbaijan's finance ministry, the government since October 1 this year has freed importers of grain to the country from payment of value added tax, Interfax-Azerbaijan news agency informed.

A spokesman for the ministry has told the news agency that preferential tax regime will be in effect during 1 year. The purpose of this move is to encourage grain imports to the country, the spokesman said.

Annual demand of the country in grain is 3.2 million tonnes, own production - 2 million tonnes per year. The shortage is met by import purchases, usually, in Russia, Ukraine and Kazakhstan, the agency informs.

In September 2003 Azerbaijan signed a protocol of intentions with Kazakhstan to buy 300,000 tonnes of grain from this country. Its supplies to the country are to be started in October.

The current VAT rate for importers in Azerbaijan is 18 percent.