Baku: “Approximately half of the growth in economic activity is related to the formalization of the economy,” said Orkhan Nazarli, the Head of the State Tax Service, during his speech at the forum titled ‘A Look into the Future of the Tax System: A New Management Model and Data-Based Decisions.’
According to Azeri-Press News Agency, Nazarli highlighted that in 2025, the fiscal revenues collected by the State Tax Service amounted to nearly AZN 24.2 billion, which constituted 79.1% of the total fiscal collections. Tax revenues to the state budget last year reached AZN 16.4 billion, with more than AZN 12 billion derived from the non-oil and gas sector. This sector saw an increase of AZN 1 billion compared to the previous year.
He further mentioned that the non-oil and gas sector accounted for 72.4% of total tax revenues, and its share in the private sector reached 76%. Nazarli emphasized that the positive dynamics observed are not solely due to strengthened administrative control but are also attributed to the legalization of economic activity and the growing mutual trust between taxpayers and tax authorities.