(MENAFN- AzerNews)
Nazrin Abdul
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Azerbaijan is actively engaged in the restoration of the
Garabagh region and Eastern Zangazur, prioritizing the
reconstruction of infrastructure, housing, and public services.
This initiative is designed to revitalize the local Economy and
facilitate the return of displaced communities. The government is
committed to investing in sustainable development projects,
promoting environmental protection, and enhancing connectivity
within the region. As reconstruction efforts advance, Azerbaijan is
dedicated to fostering peace and stability, ensuring a promising
future for the residents of Garabagh region and Eastern
Zangazur.
Additionally, loans for companies involved in the reconstruction
of Garabagh are being offered on preferential terms. To enhance
these measures, the government has introduced several concessions
for local entrepreneurs. As of July 1 of this year, the total
amount of loans disbursed in the Garabagh economic region reached
456 million 441 thousand manats, an increase from 404 million 983
thousand manats at the beginning of the year. Consequently, the
credit portfolio of the economic region has grown by 51 million 459
thousand manats, representing a 13 percent increase since the start
of the year. The majority of these loans, amounting to 455 million
627 thousand manats, were issued in manats, with an average
interest rate of 18.87 percent. This framework creates favorable
conditions for the private sector to engage more actively in the
recovery and reconstruction initiatives.
It should be emphasized that the minimum amount of the
concessional loan provided by the Entrepreneurship Development Fund
is 5 million manats, with a term of 7 years at an interest rate of
15 percent, of which 10 percent is subsidized by the state.
Recently, a meeting was held with taxpayers engaged in
entrepreneurial activities in Agdam, Fuzuli, and Khojavand,
organized by the Fuzuli City Office of the Garabagh Territorial Tax
Administration under the Ministry of Economy.
About 70 micro and small business entities operating in various
sectors participated in the meeting. Information was provided on
the services available to taxpayers, tax concessions in the
liberated territories, including loans with state guarantees and
subsidized loan interest.
Speaking at the event, Emin Shirinov, a member of the Board of
Directors of the Entrepreneurship Development Fund (EDF), stated
that up to 24 million manats in concessional loans have been
provided for projects implemented in the liberated territories. He
emphasized that the Fund is particularly interested in making this
mechanism accessible to entrepreneurs and noted that the EDF is
ready to support them in overcoming any challenges they face.
Alakbar Mammadov, head of the Garabagh Territorial General
Administration of Taxes, also spoke at the event. In his speech, he
addressed several points related to the "Great Return" program for
the territories freed from occupation and provided extensive
information about the steps taken by the state to develop
entrepreneurship in these areas. He emphasized that support
mechanisms aimed at fostering entrepreneurship are crucial for
settling people in these regions, involving the labor force, and
enhancing infrastructure.
It should be noted that the great return to the liberated
territories has been defined as one of Azerbaijan's five National
Priorities until 2030. The "Socio-Economic Development Strategy of
the Republic of Azerbaijan for 2022-2026" is an important document
that serves to achieve the goals of this new development phase.
During the meeting, it was mentioned that monitoring of
taxpayers operating in the liberated territories is a priority. The
main goal is to assess the registration of business entities with
the tax authority, as registered businesses will be able to benefit
from tax incentives by obtaining resident status in these
areas.
In line with the priority of revitalizing Garabagh, and to
realize the region's industrial potential, reintegrate it into the
national economy, and ensure employment for the population, the
President of the Republic of Azerbaijan has established the Aghdam
Industrial Park in Aghdam city and the "Araz Valley Economic Zone"
Industrial Park in Jabrayil district.
These industrial parks, along with other existing ones in the
country, create a favorable investment environment for
entrepreneurs. Residents of the industrial parks benefit from
ready-made infrastructure funded by the state. Additionally, they
are exempt from property tax, land tax, income tax, and profit tax
for 10 years from the date of registration. They also enjoy
exemptions from VAT during the import of machinery and
technological equipment for production purposes, as well as from
customs duties for the same duration.
Moreover, changes made to the Tax Code as of January 1 of this
year have introduced additional benefits for entrepreneurs
operating in the liberated territories. These benefits include
subsidizing social insurance fees, granting five days of additional
vacation to professionals living and working in these areas,
providing supplements to monthly salaries, and a one-time allowance
of 600 manats. The process for obtaining work permits has been
simplified, and the labor migration quota will not apply for five
days for foreign specialists. Additionally, the import of certain
raw materials for production by entrepreneurs in the liberated
territories is exempt from VAT for 10 years.
In summary, Azerbaijan is making remarkable strides in the
reconstruction of the Garabagh region and Eastern Zangezur,
emphasizing infrastructure development, economic revitalization,
and the safe return of displaced communities. Central to this
initiative is the provision of preferential loans, with a total of
456 million manats disbursed to support local entrepreneurs,
alongside minimum concessional loans of 5 million manats from the
Entrepreneurship Development Fund. These financial measures,
coupled with various government concessions, create an enabling
environment for private sector participation.
Furthermore, the establishment of industrial parks, such as the
Aghdam Industrial Park and the Araz Valley Economic Zone, alongside
tax exemptions and additional benefits for businesses, reinforces
Azerbaijan's commitment to reintegrating these territories into the
national economy. As the country progresses in this ambitious
effort, it remains dedicated to fostering peace, stability, and a
prosperous future for all residents of the region.
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