Sahil Babayev: Azerbaijan expanding tax incentives, strengthening assessment of their effectiveness

Azerbaijan is taking a number of steps to evaluate the effectiveness of existing tax incentives and exemptions, as well as to introduce new mechanisms in this area, Finance Minister Sahil Babayev said during the second reading of the draft law "On the State Budget for 2026" at a plenary session of the Parliament, Report informs.

According to him, current incentives are already regularly analyzed through the Ministry's electronic exemption system. Based on their effectiveness, decisions are made to extend or terminate them.

"We also discussed additional tax incentives. This package is not limited to income tax. The Nakhchivan Autonomous Republic and the liberated territories continue to operate under the most preferential regime. Additional VAT and simplified tax preferences are provided for the catering sector, and incentives for the agricultural sector and media are being expanded. The simplified tax limit for cashless payments is increasing from 200,000 to 400,000 manats. A number of incentive mechanisms are being applied to tourism. Overall, additional incentives are provided for most sectors of the economy, particularly those aimed at increasing economic activity," the minister emphasized.

($1=1.7 manats)