Alekper Mamedov: "Government must take a number of measures to reduce influence of global crisis on the private sector of Azerbaijan"

According to him, the government must take a number of measures to reduce influence of the crisis to middle and small entrepreneurship.

"They must settle problems not at the expense of entrepreneurs but in a complex way on the basis of a state program, by the help of the state reserve fund and state oil fund. At the same time, they must not allow the decline in economic activeness, increase in tax rates, increase in prices on energy sources, there is a need to strengthen control over the activity of natural monopolists, issue loans for payments on social insurance, restructure and prolong terms of payment of debts on these fees.

We also consider it necessary to prepare the list of subjects of small and middle business, which account for 250-500 and over 500 employees and start to provide direct financial aid to them in a form of credits, give them a rest in payment of fees for social insurance until the end of the crisis, include all social expenses in large and middle enterprises in the prime cost", said he.
 
Mamedov said that in order to support small enterprises it is necessary to raise the volume of budget assignments to the National Fund of Assistance to Entrepreneurship to AZN 1 bln and review rules of use of the funds.

"In particular, I think it necessary to change mechanisms of issuing credits and issue them indirectly and to addressees, reduce rates on credits from 7% to 0%, attract public associations of entrepreneurs for strengthening public control and transparency of the process of issuing credits.

Moreover, it would be possible to raise by 10-15 times the criteria of application of the facilitated system of taxing, which did not top AZN 22,500 of the turnover of an enterprise in the last quarter of 2008, reduce volumes of social payments by employers from 22 to 14-15%, ensure vacations on them for small and middle entrepreneurs engaged in craft, carpeting and so on", noted Mamedov.

According to him, to support local entrepreneurs, it is necessary to give them a rest or fully release from payment of VAT on production, purchased from abroad, attract Azerbaijani businessmen to tenders held in the country, reduce cost of electric energy for producing enterprises.

"It is also necessary to reduce expenses on documenting, taxing and other expenses in construction.

As for the legislative basis, in this part for the better improvement of business environment in Azerbaijan, minimizing influence of economic crisis it is necessary to accelerate process of adoption of the Code of competition and the state program of development of entrepreneurship. All this will help the private sector of Azerbaijan survive in hard times", concluded Mamedov. 

/Day.Az/