As a continuation of the successful social and economic reforms and transparency carried out under the leadership of the Head of State, the measures implemented to ensure the sustainable development of the economy of the Nakhchivan Autonomous Republic have yielded positive results.
In 2024, the Gross Domestic Product (GDP) of the Nakhchivan Autonomous Republic increased by 3.1% compared to the previous year.
The increase in local revenues is an important factor for the sustainable development of the economy. In the Autonomous Republic, the share of local revenues in covering expenditures was 30% in 2022, 38% in 2023, and 57% in 2024. Overall, last year, 87.5% of the Autonomous Republic's local revenues were formed from income through the Ministry of Economy.
In recent years, the tax policy has been one of the main economic regulation tools, aimed at promoting economic growth and developing the business environment. In 2023 and 2024, tax control measures in Nakhchivan were minimized. To increase the level of voluntary compliance in the field of taxation by entrepreneurs in Nakhchivan, Sharur, Babak, and Ordubad cities, service centers for tax payers were launched. As a result of these measures, the level of voluntary compliance by business entities in the tax field reached 99.1% in 2024, while voluntary declaration reached 99.5%.
Thus, the measures implemented to improve the tax system in the autonomous republic have significantly increased tax revenues. In 2024, tax revenues in Nakhchivan rose by 37.6% compared to 2023, reaching 226.6 million manats. This is 30.2% higher than the projected indicators.
In 2024, the number of active taxpayers in Nakhchivan increased by 71.4%, reaching 21,778, while the number of VAT payers rose by 87.1%, reaching 709.
In 2024, tax payers in the autonomous republic preferred the electronic registration system, and 83% of the 241 commercial legal entities registered with the state were registered electronically.
In the past two years, nearly 3,200 online control cash registers and more than 2,200 POS terminals have been installed in Nakhchivan. In 2024, the turnover of cashless transactions increased by 66.2%, exceeding 1 billion Azn, with the turnover of POS terminals rising by 38.8%, reaching 112 million Azn.
In 2024, a total of 1.4 million Azn was refunded to consumers under the "VAT Refund" project, which is 68% more compared to 2023.
As a result of the implemented measures, significant progress has also been achieved in social contributions. Mandatory state social insurance contributions increased by 9.7% to 162 million Azn, while contributions from the non-state sector rose by 15.8% to 25.4 million Azn. Contributions to the unemployment insurance fund grew by 11.4% to 4.4 million Azn, and mandatory health insurance contributions increased by 18.9% to 28.9 million Azn.
The increase in transparency in the country's labor market has had a significant impact on growth and development. As a result of measures implemented to formalize the labor market in the autonomous republic, the number of active employment contracts in the non-state sector has increased 3.6 times, reaching 11,038.
As a result of the reforms carried out, the process of managing state property and implementing privatization programs has been optimized. Consequently, in the autonomous republic, revenues from the privatization of state property increased by 23.5%, revenues from the lease of state property rose by 87.6%, and revenues from the auction sales of small state enterprises and non-residential properties grew 13 times.
The implementation of all types of electronic services provided by the State Service for Property Issues under the Ministry of Economy of the Republic of Azerbaijan has begun in the Nakhchivan Autonomous Republic. In 2024, the number of requests received through electronic services increased 4.8 times compared to 2023, reaching 6,500.
Measures are being continued to simplify administrative procedures in entrepreneurship, enhance the management skills of business representatives, and provide concessional loans. Last year, the amount of non-performing loans under the Entrepreneurship Development Fund in the autonomous republic decreased by 3.1 times.
The mentioned indicators reflect the socio-economic progress and trends of sustainable development in the Nakhchivan Autonomous Republic over the past year, as well as a favorable business environment and the efficiency of the tax system.
