According to the draft state budget of Azerbaijan for 2017, tax payments forecast for SOCAR is set at 1 billion 280 million AZN, 40 million AZN or 3.2% more than the forecast for 2016. This was reported on the website of the Ministry of Finance of Azerbaijan.
In general, the tax from SOCAR should provide 8% of budget revenues next year.
In 2016 the plan for SOCAR on tax payments to the state budget is set at 1 billion 240 million AZN. At the end of eight months of this year SOCAR already paid to the state budget more than 900 million AZN, while the average export price of Azeri oil was $ 42.55 per barrel.
In 2015, SOCAR paid taxes in the amount of 1,480,195,000 AZN to the state budget, when the average export price of Azeri oil was $ 54 per barrel.
It should be noted that SOCAR paid a record amount of taxes to the state budget by the end of 2014 - 1.825 billion AZN with an average oil price of $ 104 per barrel.
Comparison of prices for oil and SOCAR’s total investment expenses abroad and in the domestic market shows that this year the government simply withdraws funds from SOCAR to replenish the state budget. At the same time, the government makes every effort to help SOCAR: if necessary, it allocates funds from the state budget to increase the size of the authorized capital, as well as provides support for the financing of major projects. –12B--
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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