Projects receive document of investment incentives in Azerbaijan

/By Azernews/

By Nigar Abbasova

Azerbaijan’s Economy Ministry issued 12 documents of the investment incentives with the total worth over 106 million manats ($ 67.00 million) on July 29. The documents were presented to entrepreneurs during a meeting held in the ministry.

Deputy Economy Minister Niyazi Safarov, addressing the meeting, said that the government takes systematic measures to bolster entrepreneurship in the country, regardless difficult economic situation in the world.

“As many as 30 entrepreneurs have received the document of investment incentives so far, overall volume of investments under the documents amounted to approximately 300 million manats ($ 189.6 million). The investments are expected to allow the creation of about 2,700 new work places. The projects cover seven economic areas of Azerbaijan,” Safarov said.

Businessmen in Azerbaijan became eligible to get a document of the investment incentives following the approval of amendments proposed to the Tax Code of the country.

The country is working to create a more attractive business environment, and become more alluring for foreign investments, as it aims to reduce its dependence on oil revenues and diversify its economy.

Under the document of investment incentives, half of the revenue of an individual entrepreneur, profits of legal entity are exempted from income tax for seven years. Import of equipment for the implementation of the projects is also exempt of VAT and customs duties.

Safarov also said that creation of industrial parks and districts is one of the issues of top priority for the government, mentioning growing interest to the projects.

“To date, we have already selected residents for Neftchala industrial district while the project of Masalli industrial district received some 33 offers worth over 31 million manats. Moreover, industrial parks in Sumgait, in the village of Balakhani and Garadagh in Baku are currently operating. Works on the provision of infrastructure in Mingachevir industrial district are currently underway.”

Earlier, Economy Minister Shahin Mustafayev said that the government plans to invest more than 1.1 billion of manats (about $704 million) in development of the industrial parks.