BAKU, Azerbaijan, April 9. The IMF estimates the annual revenue loss in Azerbaijan as a result of tax concessions at more than two billion manat ($1.18 billion), or about 1.5 percent of GDP, Trend reports via the IMF
"The authorities should implement a number of measures, including reviewing the existing tax system to broaden the tax base, continue strengthening tax administration, and identify new sources of revenue," the fund said.
According to IMF forecasts, the rollout of the Tax Administration Diagnostic Tool (TADAT) system can help identify possible weaknesses in tax administration and support the state's efforts to increase tax revenues. Regarding expenditures, the government should carefully monitor the growth of the wage bill and the more efficient and targeted use of subsidies. At the same time, a gradual reduction in spending in this area by increasing the efficiency of public investment spending should also contribute to the stabilization of public finances (fiscal consolidation).
To this end, the government may also consider implementing the Public Investment Management Assessment (PIMA) tool.
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