Is there a need for sanctions over tax debts ?

Is there a need for sanctions over tax debts ?

12 February 2016, 18:04 915
It has been proposed not to give loans for citizens in order to provide payment of property tax debts of Azerbaijani citizens.  
Head of the municipality of Nasimi district of Baku city, Nazim Garakhanov told Trend that property tax payments must be compulsory. According to him, involvement of  the relevant executive authorities  must be provided. 
"ASAN service” checkpoints, notaries have to be involved in this issue. At the same time, banks must have a list of indebted citizens drafted by the municipalities  that  it would be available to require to pay tax debts while giving loans for citizens. By this way citizens may be forced to pay their debts.  Over lack of any administrative power of municipalities, citizens easily evade from  tax debts payment

A loan ban is not a proper method

Member of Milli Mejlis Tahir Rzayev told "Kaspi” that influential mechanisms are used in all fields for collection of payments timely. However, municipalities do not have such authority: "Various penalties are imposed over not paying taxes. The Ministry of Taxes imposes sanctions against people who do not pay taxes. But municipalities do not have such punishment mechanism.  However, Tahir Rzayev does not find putting obstacles in giving loans for those who do not  pay  tax debts suitably”. 

Activities of municipalities must be effective 

Earlier, those taxes were payed by cash. But we refused on cash payment in due to implementation of those mechanisms in our country too that are being used in the world.
Currently, these payments are taken via the postal service. Poeple’s approach to municipalities should be enhanced  for normalizing payments. Municipality sends letters to addresses over not paying taxes and requires to pay debts. Regrettably, citizens ignore this require and do not pay debts. There is not an efficient mechanism to prevent it. 
MP steressed that, awareness is important in this issue: " Significance of tax and advantages of  tax payments  in time must be explained to citizens.  In fact, amount of those taxes  is not so much as it supposed. Simply, citizens are indifferent to tax payment  and some problems emerge over this. 

Tax payment culture should be fostered 

According to head of Center for the Study of Economic Resources, Ruslan Atakishiyev, a transparent mechanism has to be imposed on collection of tax payments and expenditure of funds collected from these. As, trust of taxpayers must grow for increasing of tax payment.  He supposes that imposing sanctions and penalties would not be right in this issue: " Firstly, management of budget of manucipalities must be modernized. Reforms need to be done. Their autothorities have to be enlarged and people’s awareness should be raised on it.  

R.Atakishiyev noted that, if citizens will not pay taxes even after all those mentioned measures, then imposing sanctions might be possible: " But intervention of local authorities in formation of current municipal budget is not suitable for now. Provison of independent activity and full power on its budget is very important. 

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