In January-April this year under the country's tax service was transferred to the state budget 2 billion 368 million manat that is 282.4 million manat or 10.7% less than in the comparable period of 2014. Although the tax authorities themselves say that they exceeded the forecast by 1.7%.
According to the Ministry of Taxes, the non-oil sector provided 65.4% (1 billion 549 million manat) of tax charges (this includes state fee for various services). Compared with the same period of 2014 the tax collected from non-oil sector was 137.1 million manat more.
It should be noted that the decline in tax revenues is due to the fall in prices of oil, the main export product of Azerbaijan.
From the beginning of 2015, the tax authorities have stepped up pressure on the private sector and increased intensity of field tax audits. Entrepreneurs are forced to enter into a partnership agreement that provides for the imposition of obligations to transfer to the state budget a certain amount far exceeding the size of payments for previous years. --08B
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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