Nusrat Ibrahimov: "... your nation is very businesslike, but, unfortunately, carrying stones and earning five manats is better than reading a book"

For several years now, the issue of the application of lease agreements for apartments rented by citizens and their taxation has been on the media agenda from time to time, but the government has not taken any measures in this direction. The law requires that the apartments rented by the citizen be provided on the basis of a formal contract, and that the party receiving the income must pay the state a tax of 14 percent of the income. In any case, the legislation of Azerbaijan evaluates this economic activity as a business, therefore, the main approach should be from the point of view of legislation. Solving this problem can also help to increase transparency and reduce the “shadow economy”.
Nusrat Ibarkhimov, a real estate expert, said the law should be the same for everyone: "Every entrepreneur who rents or rents real estate must enter into a formal agreement with a partner and pay a tax of 14 percent of his income." "This question. has not been resolved for several years, the state budget is losing money, and the number of negative cases of renting undocumented real estate is growing day by day. The sooner this issue is resolved, the better for both the state and society. "
Commenting on the current pandemic, declining income and loss of jobs, the expert said that it is likely to be beneficial in this regard: “When a person has a stable income, it is low economic activity due to self-confidence. But when income is unstable, when income increases depending on human activities, economic activity increases. Consequently, this could lead to the activation of rental housing entrepreneurs. Countries called "Asian tigers" have no natural resources, but their populations are very active, and as a result, human well-being and incomes are high.
A foreigner told me that your country is very businesslike, but, unfortunately, the car is empty and brings five manats better than reading a book. This is a worthy act, and this should be the end of it. We have to read a lot of books. "
In our opinion, the low economic activity of the population in Azerbaijan is mainly related to the low level of economic activity. That is, when a citizen wants to declare himself in any economic sphere, he faces administrative obstacles. We are not yet saying that all spheres of the economy should be monopolized by oligarchs. There are enough talented people in the country, and some of them have the financial resources to start their own business. However, not every citizen with such opportunities can open a business in the country due to artificial barriers. This is the crux of the problem.

Akif Nasirli