Azerbaijan’s Non-Oil Tax Revenues Rise to 80% as Economy Expands: State Tax Service
Baku, The Gulf Observer: Azerbaijan has witnessed significant growth in its taxpayer base and non-oil tax revenues over the past seven years, reflecting the country’s expanding economy and successful fiscal reforms, according to the Head of the State Tax Service under the Ministry of Economy, Orkhan Nazarli.
In an interview with the Azerbaijan State News Agency (AZERTAC) and REAL TV, Nazarli said that Azerbaijan currently has more than 880,000 active taxpayers, over 61,000 active Value Added Tax (VAT) payers, and more than 242,000 active economic entities, describing these figures as a direct outcome of sustained economic expansion.
He noted that the contribution of the non-oil and gas sector to total tax revenues has increased substantially over the past seven years, rising from 67 percent to 80 percent, highlighting the country’s continued efforts to diversify its economy and reduce dependence on hydrocarbon revenues.
Nazarli also pointed to a marked improvement in the role of tax revenues within the national economy, stating that the share of tax revenues in Azerbaijan’s Gross Domestic Product (GDP) increased from 9.4 percent to 12.7 percent during the same period.
He explained that the figure relates solely to tax revenues and does not include other fiscal components.
Referring to international methodology, Nazarli said that customs duties and social security contributions are also taken into account when assessing the overall fiscal burden. Based on this broader approach, he noted, the share of total fiscal revenues in GDP has increased by 5 to 6 percentage points over the past seven years.
The Head of the State Tax Service emphasized that the figures demonstrate not only sustained economic growth but also a faster pace of growth in tax revenues, underscoring the effectiveness of Azerbaijan’s fiscal policies and tax administration reforms.
