International experts have acknowledged that the tax legislation and efficiency of the tax service of Azerbaijan is perfect. It enables fulfilling annual forecasts on tax allocations to the State Budget without difficulties.
Trend reports referring to Akif Musayev, the Chief of the Central Department for Strategic Research and Tax Policy of the Azerbaijan Taxes Ministry, that even though work on improving the tax administration is constantly carried out, difficulties still remain, since the qualitative potential has not been fully put into practice. Meanwhile, the number of taxes in Azerbaijan is less than in other countries of the region, and that speaks about the reduction in tax burden. Due to this, corresponding investment climate has been created in the country to develop the entrepreneurship.
The number of tax payers increased in 2006 by 46%. The tax potential is set up to expand as well, and that will have its effect on the increase of the tax allocation volumes. The forecast on tax allocations were fulfiled by 103% in 2006. According to Mr. Musayev, compared with 2002, the tax allocations increased in 4,6 times. At the same time the responsibility of the tax bodies to the State Budget increases as well, since the weight of tax allocations in the income part of the State Budget makes up 70%. The above-mentioned indicator to GDP increased by 3,3 points and made up 15,3% versus the corresponding figures registered in 2005.