Some 41 percent of tax debts in Azerbaijan belong to the public sector, Ilkin Veliyev, head of the Taxes Ministry's Tax Debt Collection Department, said at a press conference on Tuesday.
"These are debts from utilities left over from the Soviet period," Veliyev said.
He said that the debt was reduced by 16.2 per cent in 2012 compared to 35 percent in March.
A trend of paying off tax debts has been observed since 2010. As a result, total debt was reduced by 20 percent in 2010 and by 43.5 percent during 2010-2011.
The Taxes Ministry is examining more flexible and efficient mechanisms for tax debt collection used elsewhere in the world.
Azerbaijan began disclosing debts owed by taxpayers in Aug. 2011. The tax bodies have started to invite taxpayers who know little about their debts or disagree with them or their amount to jointly examine these debts. This practice has been widely used around the world. Before its use in Azerbaijan, practices from Australia, Ireland and New Zealand were examined.
At present, the taxpayer can obtain information about the amount and cause of the debt structure by e-mail, SMS, voice messages, notifications.
The ministry is also working to expand its sources of information on debtors./Trend/