BAKU, Azerbaijan, January 8. One of the topics discussed in the Azerbaijani parliament is the tax exemption for the minimum wage, a member of the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship Vugar Bayramov told Trend.
He noted that the minimum wage of Azerbaijani citizens working in the public and oil sectors is subject to taxation.
"It should be taken into account that the number of our citizens working in the public sector and receiving the minimum wage is rather high. Therefore, the exemption of this salary from taxes is important for strengthening their social security," the MP explained.
"According to the current rules, from a citizen's minimum wage (345 manat or $202.94), an income tax of 20.2 manat ($11.88) is deducted. Additionally, a little over 10 manat ($5.88) is deducted as social tax. As a result, 200 manat ($117.65) is deducted from 345 manat ($202.94), and an additional income tax is applied to the remaining 145 manat ($85.29) at a rate of 14 percent," Bayramov said.
"We propose to fix the non-taxable part at precisely 345 manat, thus preventing deduction of 200 manat from the minimum wage. This can lead to an increase in the real wages of the mentioned category of citizens," he added.
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