Leasing companies may reduce interest in Azerbaijan

Leasing companies operating in Azerbaijan can reduce interest.

banks.az reports with reference to report that this issue was discussed on August 19 at a meeting of the State Tax Service with representatives of local leasing companies.

Commenting on the details of the meeting, one of the market participants, Ramal Jafarov, noted that several issues need to be resolved to reduce interest:

"Actually, there are many problems with leasing. But at the meeting, we raised several issues in particular. One of them was giving the consumer the right to a refund of value added tax (VAT) on leasing operations. Because here, when there are losses, it becomes difficult to compete Another problem was the recognition of special provisions created as expenses. Unlike banks, when leasing companies create special provisions, they are not treated as expenses for non-payment of income tax. If these proposals are accepted, leasing may already be a more competitive product, even if it is a competitive product, wealthy players can enter the market. And that can lower the percentage. The decrease in the percentage depends on the severity of competition. But it's impossible to give a specific figure."