BAKU, Azerbaijan, May 6
By Fidan Babayeva - Trend:
More than 60 farmers have been provided with microloans worth up to 700,000 manat ($411,764) from last week up till now, Chairman of the Azerbaijani Agrarian Credit and Development Agency Mirza Aliyev told Trend.
"In this regard, I would like to emphasize the intensive activity of our employees and banks,” the chairman said. “If we continue to work the same pace, then next week we will be able to bring this number up to 200 people. The average check for the issued microloans amounted to 11,000 manat ($6,470)."
“The main advantage of microlending is that it is beneficial to both banks and farmers,” the chairman added. “The state also supports this sphere.”
“The fact that PASHA Holding, which is widely operating in the financial sector of the country, has also joined this support, testifies that microlending is a perfect financial instrument,” Aliyev added.
“As is known, farmers and entrepreneurs involved in the agricultural sector are exempt from paying a number of taxes, in particular, property tax,” the chairman said. “In accordance with Article 199.9 of the Tax Code, individuals and legal entities producing agricultural products are exempt from this tax for 10 years since 2014.”
“Land tax is the only type of payment that a farmer makes today,” the chairman said. “In accordance with the action plan, approved by the Cabinet of Ministers on April 4, 2020, farmers are exempt from paying the full amount of land tax for a period of one year since January 1, 2020.”
“It is possible to say that this tax, set at two manat ($1.2) per 100 square meters, is a big amount for a small-time farmer,” the chairman said. “Some 200 manat ($117) accounts for one hectare. This amount may allow the farmer to cover 20 percent of the expenses.”
“If we take into account the state subsidy (if wheat has been sown, the subsidy reaches 200 manat ($117) per hectare), then 50 percent of the expenses are paid by the state," the chairman stressed.
Touching upon the expansion of production projected at the beginning of the year, Aliyev stressed that this process depends on a number of factors.
“The means for production, quality seeds, fertilizers and pesticides, the access to finance and other resources, as well as the conditions necessary for the production of agricultural products, must be ensured,” the chairman added.
(1 USD = 1.7 AZN on May 6)
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