Azerbaijan, Baku / corr Trend U.Ismayilova / Ingilab Ahmadov, the Director of the Public Finance Monitoring Center (PFMC), the cut on VAT rates will not bring essential changes. He was commenting on the Ministry's intention to reduce the tax VAT rates in 2008 to 17.5% from the current 18%.
"Cut by 0.5% is not so essential for a taxpayer taking into consideration that that current the special weight of VAT as compared to taxes dropped and the special weight of income tax rose significantly," he added.
Ahmadov noted that cut in VAT rates by 0.5% is the demonstration of a policy on gradual decrease of this tax by the Government.
Earlier, the National Confederation of Entrepreneurs (Employers) of Azerbaijan proposed the Taxes Ministry reduce rates of VAT to 14% from the current 18%.
"No dramatic changes are expected either in collection of taxes or development of business," he added.