At the forum titled “Tax Service – 25: Sustainable Development and Effective Transformation,” the reforms carried out in the tax system and their positive results were highlighted, and sessions were held.
A forum on “Tax Service – 25: Sustainable Development and Effective Transformation” was held at the Ministry of Economy. The event was attended by heads and representatives of various government agencies, members of parliament, representatives of entrepreneurs' public associations, experts, and businesspeople.
The event began with the performance of the national anthem. Minister of Economy Mikayıl Jabbarov read out a letter from President Ilham Aliyev addressed to the participants of the forum “Tax Service – 25: Sustainable Development and Effective Transformation.” In the letter, the President greeted the forum participants and congratulated the employees of the State Tax Service on their professional holiday.
The year 2025 has been declared the "Year of the Constitution and Sovereignty" in the Republic of Azerbaijan. This year marks the 30th anniversary of the adoption of the Constitution and the 5th anniversary of victory in the Patriotic War. The provisions of our country’s supreme law reflect the foundations of state independence and the will of the people, serving as a basis for Azerbaijan’s confident progress toward building a democratic and legal state.
One of the important provisions of our Constitution, which relates to the main duties of citizens, is reflected in its Article 73: “it is everyone's duty to pay taxes and other state payments in full and on time as prescribed by law.” This provision established in our Constitution on taxes is a guarantee of financial stability and sustainable development of our state and creates a solid foundation for the legal and economic development of our country.
Azerbaijan possesses a dynamic economy with high development potential. We implement large-scale infrastructure projects, carry out reforms aimed at enhancing competitiveness across various sectors, and work towards building a sustainable and innovative economy. At the same time, we attract foreign investments and take significant steps to strengthen local production. Our achievements not only accelerate sustainable economic growth but also contribute to improving social welfare. Our path is based on sustainable development and transparent governance.
Our primary goal is to further diversify our economy and refine the sustainable development model. The "Azerbaijan 2030: National Priorities for Socio-Economic Development" serves as the foundation of our development strategy in the near future. Our key priorities include, building a continuously strengthening, competitive economy, establishing an inclusive society based on social justice, transforming Azerbaijan into a hub of modern innovation and "green growth", powered by competitive human capital, resettling the liberated territories and ensuring their sustainable development. Each of these national priorities is interconnected and, when implemented together, will yield significant results.
The foundation for achieving these goals lies in the economic strength, revenue generation, and fiscal sustainability of the state. A well-functioning tax system plays a crucial role in shaping strong financial capabilities. The steady growth of financial resources and fiscal sustainability of budget revenues depends on the implementation of an effective and proactive tax policy. Ongoing tax reforms, along with new approaches and mechanisms in tax administration, have elevated transparency in the economy to a qualitatively new level. Today, tax policy serves both as an active economic regulation tool and a stimulating instrument. Currently, a significant portion of fiscal revenues is ensured by tax authorities.
The full restoration of our territorial integrity and sovereignty has laid a solid foundation for the economic development of the liberated territories. The steps we are taking to restore infrastructure, establish new industrial and agricultural sectors, and reintegrate the region into the national economy will lead to significant progress in the future. The diversification of the economy and ensuring the social well-being of the local population will accelerate the development of these areas. The Karabakh and Eastern Zangezur regions will make important contributions to the overall economic potential of our country.
Tax policy and tax incentive tools play a crucial role in this process. Long-term tax and customs benefits have been introduced for entrepreneurs operating in liberated territories. The full restoration of our territorial integrity has also increased foreign investors' interest in our country. For many years, Azerbaijan has maintained a favorable investment climate, ranking among the leading countries in per capita investment volume. However, to ensure economic sustainability in the region and broaden the scope of investments, we must create an even more attractive business and tax environment. Entrepreneurs should receive strong support, and artificial barriers must be eliminated. The primary duty of regulatory authorities should be to expand business opportunities and promote the growth of a strong base of medium and large taxpayers contributing to the state budget. We are building a powerful state, and citizens of such a state should take pride in paying taxes.
The tax system plays a crucial role in the development of our country, and tax officers are essential in implementing the state’s economic policies. They are not only responsible for ensuring budget revenues but also play a key role in maintaining economic stability and social justice. Your work significantly contributes to the formation of the state budget and the implementation of economic and social projects. Effective cooperation with taxpayers and the accurate and timely payment of taxes not only strengthens the economy but also enhances public trust in the state.
Our country faces many goals and responsibilities ahead. On this path, your dedication to your work and loyalty to the homeland are invaluable assets. I am confident that you will continue to fulfill this honorable duty at the highest level and contribute to the further strengthening of our nation.
I wish the entire staff of the State Tax Service good health and success in their professional activities. Once again, I congratulate you and wish you success in every step you take for the development and prosperity of our country!
A film showcasing the 25-year activity of Azerbaijan's tax authorities was presented at the forum.
Minister of Economy Mikayıl Jabbarov delivered a speech at the event, congratulating tax officers on the 25th anniversary of the service and their professional holiday. He emphasized that tax policy plays a significant role in ensuring economic efficiency.
It was noted that the tax service is not merely a fiscal body but also an institution that supports business development, promotes transparency, and fosters effective partnerships with entrepreneurs. In recent years, the increase in the number of entrepreneurial entities operating in the non-oil sector and their growing share in the overall economy serve as clear indicators of this progress.
It was stated that one of the key priorities of the economic agenda is sustainable development and the strengthening of the private sector. Alongside the growth of the private sector, it was noted that state enterprises have increased their profitability as a result of recent reforms. These enterprises have also reduced their debt burden, which is considered a potential risk, and decreased their dependence on the state budget. Additionally, the importance of promoting export-oriented sectors and services to ensure sustainable economic growth and fiscal stability was emphasized.
Since 2019, the tax system reforms in Azerbaijan have led to significant progress in the formalization of labor relations. Thanks to incentives introduced in tax legislation, there has been a notable increase in the number of official employment contracts.
At the forum, a presentation was showcased, highlighting Azerbaijan’s macroeconomic growth from 2018 to 2024. The presentation covered key indicators such as the expansion of the non-oil sector, the increase in the share of tax revenues in non-oil GDP, the rise in the number of employment contracts, and other economic performance metrics.
At the event, the Commissioner for Human Rights (Ombudsman) of the Republic of Azerbaijan, Sabina Aliyeva, spoke about the rights of taxpayers and the importance of transparency and accountability in the activities of tax authorities.
The Chairman of the State Customs Committee, Shahin Baghirov, emphasized the effective cooperation between the State Customs Committee and the State Tax Service. He highlighted the importance of partnership within the unified risk platform framework in this regard.
The President of the National Confederation of Entrepreneurs (Employers) Organizations, Mammad Musayev, spoke about the contributions of tax authorities to the development of the national economy and the facilitation of entrepreneurial activities.
At the event, videomessages from representatives of international organizations with which the State Tax Service cooperates were played. These included Deputy Secretary-General of the Organisation for Economic Co-operation and Development (OECD), Fabrizia Lapecorella, Executive Secretary of the European Union of Tax Administrations (EUROFISC), Alix Perrignon, and Head of the Secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes, Zayda Manattan.
At the forum, Orkhan Nazarli, Head of the State Tax Service under the Ministry of Economy, delivered a speech. Reflecting on the 25-year history of the tax system, he discussed the reforms implemented within this period and shared information about the results achieved in recent years, the "State Tax Service Strategy for 2025-2028", and the directions for future tax policy. He emphasized that the tax system, with its 25-year history, is now actively combating the shadow economy, increasing transparency in the economy, protecting fair competition, applying different approaches to disciplined tax payers, utilizing the state's tax regulation tools, and supporting entrepreneurship. In 2024, the tax revenues exceeded 15.8 billion manats, a 2.1-fold increase compared to the beginning of 2019. The fiscal collections made through the State Tax Service amounted to 22.8 billion manats, with the Service contributing to more than 77% of total fiscal collections. The number of active taxpayers in 2024 rose 1.8 times compared to 2019, reaching 806,900.
It was emphasized that the Organisation for Economic Co-operation and Development (OECD)'s Global Forum on Transparency and Exchange of Information for Tax Purposes has rated Azerbaijan with the highest ranking in the application and evaluation of international standards for transparency and information exchange. The country’s rise in this ranking further confirms that the reforms implemented in the tax system are highly valued internationally.
The forum continued with sessions. In the session titled "Modern tax system: strategic goals and Perspectives", moderated by Professor Adalat Muradov, Rector of the Azerbaijan State University of Economics, Elvin Jamalov, Advisor to the Minister of Economy, Samira Musayeva, Deputy Head of the State Tax Service, and Simay Erdogan, Partner at McKinsey, delivered speeches.
The second session titled "Digital transformation in tax administration: new approaches and modern trends", moderated by Narmin Aslanova, Partner at Deloitte Azerbaijan in the field of taxation, featured speeches by Emil Garayev, Deputy Head of the State Tax Service, Hasan Eminov, Head of the Agile Office at Azerbaijan International Bank, and Lala Afandi, Head of Corporate Relations at Carlsberg Azerbaijan.
The session titled "The importance of state-business partnership in the new economic development model", moderated by Aygun Hajıyeva, Advisor to the Vice-Rector of ADA University, featured speeches by Jeyhun Mammadov, Tax Manager at bp, Nijat Imanov, Head of Department at the State Tax Service, and Gunel Sadiyeva, Tax Director at PwC.
The discussions during the sessions focused on supporting the business environment in the newly formed economic conditions, adapting economic governance to new challenges, and improving tax administration. The measures taken in these areas were positively assessed, and suggestions for further reforms were presented. Participants emphasized the importance of continuous development in tax policy, transparency, and effective collaboration between state and business to enhance the country's economic potential.
As part of the forum, outstanding taxpayers were awarded certificates in various nominations, recognizing their contributions to different sectors. These included "Largest Investor in Green Energy," "Investor in Liberated Territories," "Active Exporter in the Public Sector," "Active Exporter in the Private Sector," "Contributor to Employment Growth in Banking and Insurance," "Contributor to Employment Growth in Transport," "Contributor to Employment Growth in Industry," "Contributor to Employment Growth in Services," "Tax Record Holder in the Non-Oil Sector," "Tax Record Holder in the Oil Sector," "Regional Tax Record Holder," "Contributor to Employment Growth in Agriculture," "Contributor to Employment Growth in Communications," "Contributor to Employment Growth in Trade," "Contributor to Employment Growth in Construction," "Active Donor," and "Friend." These awards highlight the significant role of taxpayers in the country's economic growth, employment generation, and sustainable development.
