Baku: The share of fiscal revenues in Azerbaijan's GDP has seen a significant increase of 5-6 percent over the past seven years. This growth has been attributed to a combination of economic expansion and strategic fiscal policies, according to Orkhan Nazarli, Head of the State Tax Service under the Ministry of Economy of Azerbaijan. In a recent interview with the Azerbaijan State News Agency (AZERTAC) and REAL TV channel, Nazarli revealed that the country currently hosts more than 880,000 active taxpayers, over 61,000 active VAT payers, and more than 242,000 active economic entities.

According to Azerbaijan State News Agency, Nazarli highlighted the substantial rise in the share of the non-oil and gas sector in total tax revenues, which increased from 67 percent to 80 percent over the past seven years. This marks a noteworthy shift in the country's economic landscape. He emphasized the importance of not just focusing on the absolute figures in the state budget but also considering the share of tax revenues in the gross domestic product (GDP). During the same period, the share of tax revenues in GDP rose from 9.4 percent to 12.7 percent.

Nazarli also pointed out that the increase in fiscal revenues is indicative of a growing economy where tax revenues have outpaced economic growth rates. He clarified that the 5-6 percent rise in the share of fiscal revenues in GDP includes not only tax revenues but also customs duties and social contributions, as per international methodology. This comprehensive approach underlines the broader fiscal strategy that has been employed by Azerbaijan to bolster its economic framework.