Baku: A proposal has been made for the gradual and phased taxation of salaries in the non-oil-and-gas private sector, said Minister of Economy Mikayil Jabbarov at today’s session of the Milli Majlis while discussing the draft law ‘On the State Budget of the Republic of Azerbaijan for 2026,’ as part of the 2026 budget package discussion.

According to Azeri-Press News Agency, the minister stated that compared to January 1, 2019, the number of active taxpayers in the country had doubled, exceeding 845,000 as of November 1, 2025. The proposal includes a strategy where a lower tax rate will be applied to lower incomes. For instance, salaries up to 2500 manats might be taxed at a 7% rate in 2028, which is significantly lower than the 14% rate that would apply if the benefit were fully eliminated.