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Azerbaijan re-imposes VAT on wheat and flour imports

01 May 2009 08:13 (UTC +04:00)

Bakuâ€“ APA-ECONOMICS. Azerbaijan re-imposed the Value Added Tax on food wheat and flour imports from April 1, a year after the tax was scrapped.

The one-year tax exemption set by the Cabinet expired on May 1, 2009.

The Ministry of Agriculture said that this move will further encourage farmers and allow local producers to sell their products.

In 2008 Azerbaijan harvested a record high of 2 498 300 tons of grain (including corn) from 904 700 hectares, compared to 2.3 million tons in 2007.
The productivity increased by 0.5 metric centner per hectare to 27.7 metric centners.
The State Statistical Committee said wheat accounted for 67.1% or 1 677 500 tons of the grain harvest.

VAT rate is 18% in Azerbaijan.