The Turkish Finances Ministry has refused to simplify the tax regime for TANAP, an Azerbaijani project to transport Azerbaijani gas from Shah Deniz to Turkey, Trend reports.
This concerns VAT, income tax, excise tax, stamp duty.
Turkey agreed to pay off VAT after conclusion of the investment process. The Finances Ministry demands a higher income tax per barrel of oil pumped through the Baku-Tbilisi-Ceyhan Pipeline. The Turkish Ministry for Energy and Natural Resources will make the final decision on tax benefits.
Azerbaijan and Turkey plan to build a pipeline from the eastern to the western border of Turkey. The Turkish state energy company of BOTAS has 20% of shares in TANAP, the State Oil Company of the Azerbaijani Republic (SOCAR) holds 80%.
The pipeline is to transport 16 billion cubic meters annually at the first state. About 6 billion cubic meters will be consumed by Turkey, the rest will be exported to Europe.
Azerbaijan needs to choose a route for exports of gas to Europe through Turkey. Azerbaijan is using the South Caucasus Gas Pipeline for gas exports to Turkey.
