12:39 - 19.10.2022

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October 19, Fineko/abc.az. Expert Natig Jafarli made a statement about the rise in prices in Azerbaijan and expressed alarm about the situation.

ABC.AZ reports that the expert says that one of the ways to combat inflation is to increase local production in the medium- and long-term prospect.

"Unfortunately, we don't see any grave improvements in this regard. But there are also steps that can affect the situation in the short-term prospect, even during the day. These are tax and customs benefits in relation to foods and pharmaceuticals," Jafarli stated.

According to the expert, the parameters of the budget of the Azerbaijani government will reduce the current VAT on foods.

"This tax can be cut from 18% to 2%. That is, a 16% reduction in VAT can play important role in price regulation. We can say that production of medicines in Azerbaijan is at a low level, and we depend on imports for 96%, only 4% on local production. VAT and customs duties can also be abolished here. This may become a factor that has positive impact on price regulation," he emphasized.