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Flour producers: After exemption from VAT, the cheapest flour of region is in Azerbaijan

15 January 2016 11:28 (UTC +04:00)

"This was a humanist step taken by the head of state. As a result of this, low-income part of the population will be able to have cheap flour products. After this decision, the cheapest flour of the region will be in Azerbaijan. What will it give to Azerbaijan? The bread price will go down, problems in grain supply will be eliminated. Flour products (macaroni, vermicelli, candies and others)will be sold at lower prices”, Gasimov said.

Along with this, the Director General says this decision will lead to increase of domestic products.

Head of NEON firm Arif Hasanov noted that the firm sells 50 kg flour for AZN 22.5 after the decision.

“The government provided support to us”, he said.

In order to strengthen the social protection of population, especially low-income families, import and sale of grain, production and sale of flour and bread has been exempted from VAT since January 15, 2016 in Azerbaijan.

According to Ministry of Economy and Industry, wholesale price of flour was significantly reduced to AZN 21.5 - 22.5 a 50 kg bag, retail sale price makes AZN 23-24.

Price of 500 g bread will make AZN 0.30, 700 g – AZN 0.40.

The most serious measures will be taken about those selling these products at higher prices.