Mandatory insurance payments to be slashed by 27 percent

Draft amendments to the law “On mandatory insurance payments” envisage the axe for mandatory insurance payments from 29 to 27 starting next year.

This might result in a 60b manat loss from the Social Security Fund, which can be avoided should the tax area be extended at the expense of private sector, the fund's acting chairman Zakir Babayev said.

Social payments on budgetary organizations are anticipated to be lessened compared to 2002.

The amendment that Azerbaijanis living abroad should pay 20 percent of their average salaries in social tax will be introduced to the law in order to boost collections. It is also planned to involve entities working with civil and legal contracts in payment of the same social tax.*