Our Analytics 11 july — 18:35

Mikayil Jabbarov's figures prompted reflection (Results with Azeri Daily)



The Ministry of Taxes of Azerbaijan has presented interesting data that lead to serious reflections. According to the ministry, in the first five months of this year, the turnover of the non-oil sector in the country increased by 8% compared to the same period last year. At the same time, the increase in VAT turnover was 9.6%. As always, the trade and public catering sector showed the highest growth rates.

Analysis of the structure of this sector shows that the wholesale trade turnover for 5 months increased by 18.4%, including in terms of VAT by 24.6%. And in the retail sector, turnover increased by 37.3%, including VAT by 38.2%. The growth of turnover in public catering amounted to 20.6%. It is possible to list achievements in this and in other areas of the country's economy for a long time, and not only with an indication of turnover, including VAT. They really are. But one does not want to bore the readers with an abundance of numbers, many of which, moreover, are already known to them. But one would like to point to one important factor.

As noted by the Ministry of Taxes, an important indicator of improving transparency in the conduct of business and the reduction of the shadow economy is the growth of turnover on electronic invoices. And according to this indicator, the fiscal department really achieved significant growth: in January-May of this year, the share of turnover of enterprises of the non-oil sector through electronic invoices amounted to 65.7%.

For comparison, we note that over the same period last year, this figure did not even reach 60%. And the revolutionary, as they were called by the people, reforms in tax policy, it was thought, would not give effect so soon. Moreover, the highest growth rates of turnover through electronic invoices were recorded in agriculture - 91.8% and in trade - 43.7%. Please note that these are the areas where the introduction of advanced technologies has always met with the greatest resistance.

In principle, the transition to electronic invoices in the country has been implemented since 2010. But it was difficult to talk about such a high effect before. What happened, did the change in the leadership of the Ministry of Taxes lead to incomprehensible results? But leadership changes in other ministries, but this does not always have the desired effect. The real reason for increasing the efficiency of the fiscal department is not just the introduction of new technologies, but also the desire to achieve success not only in its industry, but throughout society.

Of course, the main goal of the Ministry of Taxes is to replenish the state budget, but our tax authorities decided to do it in a not quite familiar way, but together with the business, which was provided with great benefits. Feeling caring attitude and receiving great benefits, people also did not remain in debt. And in the ministry today they claim that transparency in relations between the state and business, reduction of the scale of the shadow economy, legalisation of business have led to an increase in tax revenues from the non-oil sector.

And the ministry in the meantime is not going to rest on its laurels. As Natig Shirinov, Director General of the Department of Expertise and Economic Analysis, noted, in the near future, the Ministry of Taxes will merge tax electronic invoices and settlement invoices. After the introduction of this innovation electronic invoices will not have the words 'Electronic tax invoice.' And it is especially interesting that this initiative also arose after a meeting with entrepreneurs, that is, it is in their interests.

And without going into the details of innovation, we can confidently say that it will give good results. After all, neither entrepreneurs nor tax authorities will do anything to the detriment - the result will be mutually beneficial. Consequently, will benefit society. And in subsequent years, along with combining the two above-mentioned invoices, it is envisaged to work out the differences in electronic invoices by type of activity. It is, however, too early to talk about this today, but we can safely say that the end of the shadow economy is coming.

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