Azerbaijan, Hungary identify promising areas of cooperation

Azerbaijan and Hungary have identified promising areas of cooperation during the meeting of two countries’ foreign ministers in Budapest on July 24.

The Azerbaijani Foreign Minister Elmar Mammadyarov underlined that strategic partnership relations between Azerbaijan and Hungary create productive ground for the development of comprehensive cooperation.

Mammadyarov informed his counterpart that the Trans Anatolian Natural Gas Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP) projects are being implemented in accordance with the plan. Speaking about the North-South and EastWest transport corridors, the minister noted that Hungarian companies can also benefit from the opportunities provided by these corridors.

Mammadyarov also noted that the support by the Hungarian government for the just position of Azerbaijan on Armenia-Azerbaijan Nagorno-Karabakh conflict and firm stance on resolution of the conflict on the basis of the territorial integrity of Azerbaijan is highly appreciated.

Moreover, the government created mechanisms to support competitive production, such as issuance of document of investment incentives.

Azerbaijani businessmen became eligible to get the investment incentives documents following the approval of amendments proposed to the Tax Code of the country.

Under the investment incentives document, half of the revenue of an individual entrepreneur, profits of legal entity are exempted from income tax for seven years. Import of equipment for the implementation of the projects is also exempt of VAT and customs duties.

Minister stressed that to date 173 documents of investment incentives have been issued for implementation of projects worth 1.6 billion manats ($940.5 million) and added that thanks to this projects 11,000 people will be employed

Moreover, 1.3 million manats ($764.2 million) have been returned to Azerbaijani exporters since early 2017, and 200.4 million manats ($117.8 million) in 2016 as part of the program on the refund of a part of expenditures for the export of nonoil products, the minister added.

The state refunds 3-6 percent of the customs value of goods to nonoil exporters within the framework of mechanisms on promoting exports of non-oil products.

Further he spoke about creation of Industrial Zones in Aghdam, Aghstafa and Gazakh regions of the republic.

Currently, work is underway on creating two industrial zones in Azerbaijan’s Masally and Neftchala districts. The minister noted that 3 enterprises already operate in the Neftchala Industrial Zone and other six enterprises are planned to start operating in 2017.

The design work, he said, has already been completed in the Masally Industrial Zone and the creation of infrastructure will begin soon.

There is very high interest in this Industrial Zone, and as of now, 33 projects worth over 33 million manats ($19.4 million), which can be implemented in the industrial zone, have been presented to the Economy Ministry.

Along with Industrial Zones, five industrial parks have been created in Azerbaijan: Sumgayit Chemical Industrial Park, Balakhani, Garadagh, Mingachevir and Pirallahi Industrial Parks.

Investors, engaged in industrial parks, are exempted from the value added tax (VAT), customs duties, as well as contributions on compulsory state social insurance to seven years.

Encouraging business doing in the country is one of the priorities for the Azerbaijani government, which supports entrepreneurs through creating necessary conditions for the development of a healthy business environment in the country.

Further Mustafayev stressed that Azerbaijani companies will take part in a tender for the construction of a gas pipeline in Pakistan, adding that preliminary agreement was reached on the results of the export mission to Pakistan, which was held this year.

In total, within the promotion of the Made in Azerbaijan brand 8 export missions were organized to China, the UAE, Germany, Pakistan, Qatar, Kazakhstan and Afghanistan.

In addition, within the framework of export missions, Azerbaijan has already concluded agreements on the supply of wine to China, apple and pomegranate juice in the UAE, Saudi Arabia, Oman and Malaysia, industrial paints in Kazakhstan.