The import of goods into Azerbaijani territory which are used in the construction of cement plants, is exempt from value added tax and customs duty by a decision of the Azerbaijani Cabinet of Ministers.

The decision was taken based on an agreed proposal by the ministries of economic development, finance and taxation, State Customs Committee, the text of the Cabinet of Ministers’ decision published on its website says on Monday.

According to the decision, it is envisaged to exempt the import of goods intended for use within the project to build cement plants with a capacity of 5000 tons of clinker per day, or two million tons of cement per year, intended for the production of oil well cement which meets the APİ (American Petroleum İnstitute) standards from VAT and customs duties.

The decision will come into force after 30 days from the date of publication and will be valid until Jan.1, 2014.

The VAT rate in Azerbaijan is 18 per cent.