In 2027, the total value of tax benefits and exemptions in Azerbaijan is expected to reach 7.6 billion manats (approximately $4.47 billion), according to Asif Gasimov, Deputy Head of the Administrative Department of Azerbaijan's Finance Ministry, Report informs.
Speaking at today's meeting of the Azerbaijani Milli Majlis (Parliament) Committee for Economic Policy, Industries and Enterprising, Gasimov said this amount would account for 5.4% of the projected gross domestic product (GDP) for next year.
"This is 630 million manats, or 0.4 percentage points, higher than the amount of tax benefits and exemptions expected by the end of 2026. For comparison, tax benefits and exemptions account for 4.6% of GDP in Georgia, 4.5% in Türkiye and 4.7% in OECD (Organization for Economic Co-operation and Development) member states," he said.
"Breaking down the figures by the authorities responsible for generating budget revenues, tax-related benefits and exemptions are expected to amount to 4.2 billion manats next year, up 9% from the current year, while those related to import operations will total 3.4 billion manats, an increase of 11% compared with this year.
As for the breakdown by economic sector, tax benefits and exemptions worth 436 million manats are envisaged for the oil and gas sector, while the non-oil and gas sector is expected to receive 7.1 billion manats. Both components are projected to increase by 9% compared with the current year.
Finally, of the total 7.6 billion manats, 4.4 billion manats fall under the category of 'tax benefits', while 3.2 billion manats qualify as 'exemptions'," the official added.
Based on the current exchange rate of 1 USD = 1.70 AZN