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Main directions of Azerbaijan's revenue policy for 2024-2027 revealed

Economy Materials 19 October 2023 18:14 (UTC +04:00)
Main directions of Azerbaijan's revenue policy for 2024-2027 revealed
Gunay Guliyeva
Gunay Guliyeva
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BAKU, Azerbaijan, October 19. The main directions of Azerbaijan's revenue policy for 2024-2027 have been named, Trend reports.

The Ministry of Finance of Azerbaijan noted that the main directions of the revenue policy for 2024-2027 are:

  • reduction of the tax burden of the population due to social benefits;

  • increase in the non-taxable part of the cost of gifts and financial support for tuition fees, a one-time allowance from 1,000 manat ($588.2) to 2,500 manat ($1,470);

  • exemption from income tax of income received through VAT refund (VAT-cashback) paid by consumers-individuals;

  • reduction of the tax burden of business entities and stimulation of entrepreneurial activity;

  • simplification of taxation of financial leasing;

  • temporary exemption from property and land tax of mortgaged property accepted by credit organizations on account of outstanding debts;

  • provision of property tax benefits to tourism entities (hostels, hotels and sanatoriums);

  • improving the tax control and expanding the tax base;

  • adjustment of the taxation regime for passenger and cargo transportation activities,

  • increase in the excise tax rate on tobacco products and alcoholic beverages;

  • improving tax administration;

  • improving the deferral of tax arrears and land tax provisions;

  • adoption of restrictive measures related to non-fulfillment of a taxpayer's tax obligation within the fixed period;

  • issuing an electronic invoice for advance payments and determining the time of its issuance;

  • improving tax and customs benefits;

  • extension of exemption that expires at the end of 2023 (for three years);

  • assessing the effectiveness of benefits from a budgetary, economic and social point of view;

  • determination of targets for the coming years;

  • improvement of customs payments;

  • from January 1, 2024 (for seven years) reduction of customs duties applied to the import of a number of raw materials and intermediate goods to the rate of "0",

  • exemption from VAT when importing a number of fixed assets.

It is predicted that the main share in the total budget will be the revenues of the state budget and the revenues of the State Oil Fund of Azerbaijan in 2024-2027.

The data of the Ministry of Finance shows that the share of non-oil revenues in state budget revenues will increase by 6.5 percentage points to 56.2 percent in 2027 compared to 2024, and in absolute terms, it will increase by 22.5 percent to 20.8 billion manat ($12.2 billion).

At the same time, oil revenues of the state budget will decrease by 5.5 percent compared to 2024 and up to 16.2 billion manat ($9.5 billion) at the end of the period.

According to the order of the President of the Republic of Azerbaijan No. 2469 dated February 2, 2021, the following five national priorities of the policy of socio-economic development of the country until 2030 are defined: a sustainable, growing competitive economy; a society based on dynamic, inclusive, and social justice; competitive human capital and space for modern innovations; a great return to liberated territories; a clean environment; and a country of "green growth".

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