Bank Of Baku

Azerbaijan studies prospects of replacing VAT with sales tax

Azerbaijan studies prospects of replacing VAT with sales tax
# 19 March 2007 09:22 (UTC +04:00)
Azerbaijan is studying the prospects of replacing Value Added Tax with sales tax.
A source in the government told APA-Economics that the lesson of Russia, Japan and the USA are being learned.
The United States has sales tax system while the EU member states apply different rates of VAT. The minimum standard rate of VAT throughout the EU is 15%, although reduced rates of VAT, as low as 5%, are applied in various states on various sorts of supply (for example, domestic fuel and power in the UK). The maximum rate in the EU is 25%.
Some experts in Azerbaijan say sales tax will help reduce tax evasion in the country while some consider VAT system more effective. /APA-Economics/
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