MP: Azerbaijan's 2026 state budget aims to boost non-oil sector development

Next year's budget package is designed to widen the tax base, reduce the shadow economy and support the non-oil sector through tax and customs incentives, rather than increase the overall tax burden, Azer Amiraslanov, Chair of the Azerbaijani Parliament's Committee on Economic Policy, Industry and Entrepreneurship, said during the first reading of the draft law on the 2026 state budget, Report informs.

He said claims that the government intends to boost budget revenues by increasing taxes do not reflect reality. "If revenues were to be ensured by raising the tax burden, why would this indicator increase by only 0.7%? And if the goal were to raise taxes, why would the government introduce tax and customs exemptions totaling 6.6 billion manats ($3.9-or 17% of next year's projected budget revenues?" Amiraslanov asked.

He stressed that official figures and government statements clearly show the new budget framework focuses on diversifying revenue sources, expanding the tax base, shrinking the shadow economy and stimulating non-oil sector growth through tax and customs incentives.