Baku: Azerbaijan’s Economy Minister Mikayil Jabbarov has outlined the government’s decision to reapply income tax starting in 2026. This announcement was made during a session discussing the draft law ‘On the State Budget of the Republic of Azerbaijan for 2026’ at the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship. The minister highlighted that the current income tax exemption will conclude on January 1, 2026.

According to Azeri-Press News Agency, the minister explained that the socio-economic objectives of the existing tax exemption have been largely realized. With improved tax administration and efforts to formalize the labor market, the government aims to continue supporting the legalization process. The planned reintroduction of income tax will focus on the non-oil private sector, with a commitment to a lower tax burden for low-income earners.