August 11, 2010

Azerbaijan may cancel VAT on grain imports

The Ministry of Agriculture has submitted a proposal to the Azerbaijan government to abolish the value-added tax (VAT) on imports of grain products, a Ministry department head, Sabir Veliyev said.

"Recent natural disasters caused damage to areas under crop. Therefore we proposed to exempt grain imports from VAT," he noted.

Commenting on import of grain products, he said about 520,000 tonnes of grain have been imported to Azerbaijan during the first five months of this year against 1,000,000 tonnes imported in 2009.

"15 % of import during M510 falls on Russian grain, and the remaining volumes fall on Kazakh grain. We will continue importing grain from the latter," he said.

He also said the proposal concerns import of grain, wheat flour and animal feedstuff.