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About half of economic growth linked to formalization of economy – tax chief

Orkhan Nazarli, the Head of the State Tax Service

05 March 2026 11:24 (UTC +04:00)

"Approximately half of the growth in economic activity is related to the formalization of the economy," said Orkhan Nazarli, the Head of the State Tax Service, during his speech at the forum titled “A Look into the Future of the Tax System: A New Management Model and Data-Based Decisions,” APA-Economics reports.

He noted that in 2025, fiscal revenues collected by the State Tax Service amounted to nearly AZN 24.2 billion, accounting for 79.1% of total fiscal collections.

According to Nazarli, tax revenues to the state budget last year reached AZN 16.4 billion, of which more than AZN 12 billion came from the non-oil and gas sector. Revenues in this sector increased by AZN 1 billion compared to the previous year.

He added that the non-oil and gas sector accounted for 72.4% of total tax revenues, while its share in the private sector reached 76%.

According to the head of the State Tax Service, the positive dynamics achieved are not only the result of strengthened administrative control but are also linked to the legalization of economic activity and growing mutual trust between taxpayers and tax authorities.