With the exception of audiovisual media entities, media entities are exempted from income tax, profit tax and simplified tax on the income they receive as a result of their activities, including advertising income, as well as financial assistance provided to them by the relevant state institution.

This was reflected in the proposed amendment to the Tax Code, which was discussed at the meeting of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis on February 6.

Ahmad Ismayilov, Executive Director of the Media Development Agency of the Republic of Azerbaijan, answers APA's questions in this regard.

- Mr. Ahmed, what is the necessity of exempting media subjects from income, profit and simplified tax?

- The Media Development Agency of the Republic of Azerbaijan held numerous meetings with media subjects, journalists and experts and received various proposals in order to ensure the transition of the country's media subjects to the business model.

After all opinions and suggestions were analyzed and systematized, the Agency applied to the relevant state bodies for the purpose of discussing the provisions of the development concept prepared by it.

In accordance with the research conducted by the MEDIA Agency and relevant state bodies, it was determined that there is a need to increase the efficiency of tax incentives applied to the field in order to improve the taxation of media subjects, protect the internal market in this direction and stimulate the production of competitive national media products.

The draft Law of the Republic of Azerbaijan "On Amendments to the Tax Code of the Republic of Azerbaijan", which includes economic concessions to the media, was discussed in the Parliament's Committee on Economic Policy, Industry and Entrepreneurship.

The project includes the exemption for 3 years of income, advertising income, and relevant financial assistance provided to media subjects, except for audiovisual media subjects, from income, profit and simplified taxes, as well as from value added tax on the presentation of media products produced by them. .

According to preliminary estimates, we are talking about a concession of 10 million manats.

- How will the economic concessions reflected in the project affect the improvement of the media advertising market?

- First of all, we should note that it is necessary to increase the volume of the advertising market in order to strengthen the economic independence of media subjects, reduce their financing from the state budget, including other sources, and ensure their independent activities.

The draft law, which envisages economic concessions to the media, will enable the economic independence of print and online media entities to be strengthened by legalizing media advertising revenues, increasing and revitalizing the volume of the advertising market.

- What will be the benefit from the economic point of view of exempting the presentation of media subjects' products from VAT?

Why are exemptions only for 3 years?

- In the state's support strategy for the development of the media, there was an experience of exemption from VAT at different times in relation to this field, and this had a positive effect on the improvement of the economic situation of the media.

In May of last year, the import and sale of mass information products, books and textbook components, as well as paper related to the production and publication of these products, were exempted from VAT.

This decision stimulated the development of print media products by substantially reducing their production costs.

This time, according to the draft submitted to the parliament, it is proposed to exempt the presentation of media products produced by media subjects, except for audiovisual media subjects, from VAT.

- You emphasize that the strengthening of media entities as a business model is one of the main priorities of media reforms.

What other steps are planned in this direction?

- The charter of the Media Development Agency established by the Decree of Mr. President Ilham Aliyev "On the deepening of reforms in the field of media in the Republic of Azerbaijan" covers a wide range of activities.

First of all, the agency aims to strengthen the economic independence of media subjects, strengthen their material and technical base, modernize the infrastructure, create a new economic model in the relevant field and supports the steps to be taken in this direction.

Measures have been taken to develop relations based on mutual trust between media and business structures, and these measures are of a continuous nature.

If we look at the content of the decisions made by the state in the direction of media development, we will see that the strengthening of the economic stability of the Azerbaijani media, the development of media that is independent, strong, capable of establishing its activity at the level of today's requirements, as well as connected to the traditions of statehood and guided by the national interests of our people, has always been in the center of attention as one of the priority tasks. .

The Media Development Agency also based its work on strengthening the economic independence of media subjects, forming a new economic model in the relevant field, and stimulating the application of new information and communication technologies and innovations.

It is gratifying that the media community also reports that the projects we implement are in line with the requirements of the modern era, that they create a foundation for the formation of a new approach to the media, and they respond positively to the Agency's initiatives.

All the projects we put forward and implemented in order to achieve the development of the media include modern processes in the international media, and in addition to increasing the professionalism of Azerbaijan's media subjects, it aimed to modernize its image and increase its international competitiveness.

We think that it is possible to eliminate the socio-economic difficulties faced by our media as a result of the support of the state, the intensification of relations with business structures, and the improvement of media management.