Azerbaijan lifts VAT for wheat and grain imports

The Azerbaijani government has decided to lift VAT for wheat and
grain, Vestnik Kavkaza reports.

According to the amendments to the list of imported goods, imported
wheat and grain will have no VAT from December 3, 2010, to August 1,
2011. The government was forced to make the decision due to the high
prices for bread.

The global prices for grain have risen recently. The prices for food
in Baku rose by an average of 9.7% in November. The beef prices rose
by 7.1%, lamb -- by 14.2%, chicken -- by 6.2%, chicken eggs -- by 50%,
granulated sugar -- by 2%, sugar -- by 4.3%, flour -- by 50%, macaroni
and vermicelli -- by 87.5%, milk -- by 20%, sour cream -- 11.1%, cheese --
by 11.7%, confectionery -- by 30%.

The prices for food products rose by 4% in August, by 4.8% in
September, by 1.3% in October. The price for agricultural products
rose by 50-100%, the price for fruits and vegetables dropped by 50%.