Measures to combat the shadow economy in Azerbaijan will expand the possibilities for financing the development of human capital, Advisor to Azerbaijan’s Minister for Taxes Khagani Abdullayev said in Baku at the Human Capital Forum Dec. 19, Trend reports.
He reminded that the proposals that the Ministry of Taxes submitted to the government include various measures to combat the shadow economy. The implementation of these measures will at least allow minimizing the huge negative impact of the shadow economy on the state budget, he said.
The global experience shows that tax policy primarily supports the mechanism for encouraging investments in human capital, he added.
In this direction, there are relevant articles in the country’s Tax Code, he said. As an example, he mentioned the exemption from income tax of educational institutions for people with disabilities.
In 2019, such benefits and exemptions will be expanded, he said.
Abdullayev noted that over the past period, Azerbaijan has very wisely used its natural resources and has taken important steps to turn oil capital into human capital.
Azerbaijan also pays attention to areas that require unique knowledge, which also include the space industry, he added.
On Dec. 19, a three-day “Human Capital Forum” started in Baku. The event, organized by the World Bank, is attended by representatives of the public and private sectors, including ministers, heads of companies, foreign experts, and others.
Forum participants discuss the current situation in labor markets, challenges facing countries in this area, as well as measures needed to be taken for the development of employment.
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