The amendments to Azerbaijan's Tax Code were prepared with the objective of stimulating strategic sectors, improving the investment climate, and increasing capital inflows, according to Orkhan Nazarli, Head of the State Tax Service under the Ministry of Economy, Azernews reports.

Nazarli made the remarks during discussions on the draft law“On Amendments to the Tax Code” at the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.

“The draft also takes into account tasks such as the introduction of tax and social insurance benefits within the framework of the socio-economic development program of the Nakhchivan Autonomous Republic, expanding state support for the fisheries and agricultural sectors, based on relevant decrees and orders of the country's president,” Nazarli said.“The draft proposals also envisage the regulation of existing tax benefits for hired labor after 2026, the alignment of excise policy with international requirements, the promotion of local automobile production, the reduction of import dependence and the protection of the domestic market, the increase of tax compliance and transparency, as well as the strengthening of the fight against illegal entrepreneurship.”

He noted that the draft consists of three main blocks and includes 145 changes in 45 articles overall.“The main directions of the draft are to stimulate the investment climate and entrepreneurial activity, reduce the tax burden on business entities, effectively regulate tax revenues and budget revenues, improve the tax theory mechanism and strengthen the fight against the 'shadow economy',” he said.

According to Nazarli, the proposed changes cover several strategic sectors of the economy, including local automobile production, shipbuilding, the oil and gas industry, public-private partnerships, fisheries, public catering, and the labor market. “The aim of making tax policy more flexible and introducing concessional mechanisms in these areas is to increase economic activity, expand export potential and maintain the stability of state revenues,” he added.

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