Baku: Minister of Finance of Azerbaijan, Sahil Babayev, clarified the introduction of a phased income tax exemption starting next year, APA reports.

According to Azeri-Press News Agency, during the discussion of the ‘2026 State Budget of the Republic of Azerbaijan’ at the meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, the Finance Minister explained that the exemption applied to income tax is set to expire on January 1, 2026.

‘A 14-25% income tax would have been applied. However, as a result of the new exemption that the government will still apply, a lower income tax will be applied. According to the project, in 2026, those with a monthly income of up to 2,500 manat will pay 3% tax, in 2027 – 5%, and from 2028 – 7%. This in itself is a very big concession.’