Bank Of Baku

Azerbaijan proposes gradual taxation of salaries in non-oil private sector

Azerbaijan proposes gradual taxation of salaries in non-oil private sector
# 19 November 2025 13:12 (UTC +04:00)

A proposal has been made for the gradual and phased taxation of salaries in the non-oil-and-gas private sector, said Minister of Economy Mikayil Jabbarov at today’s session of the Milli Majlis while discussing the draft law “On the State Budget of the Republic of Azerbaijan for 2026,” as part of the 2026 budget package discussion, APA reports.

The minister stated that compared to January 1, 2019, the number of active taxpayers in the country had doubled, exceeding 845,000 as of November 1, 2025: “A lower tax rate will be applied to lower incomes. A proposal has been made for the gradual, phased taxation of salaries in the non-oil-and-gas private sector. For instance, even if salaries up to 2500 manats are taxed at a 7% rate in 2028, this is still half of the 14% rate that would have to be applied if the benefit were fully eliminated.”

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