Ministry: Decline in tax receipts from oil and gas sector compensated by non-oil sector in Azerbaijan

In January-June 2019, AZN 4.954 billion was transferred to the consolidated budget through tax authorities, of which AZN 3.663 billion was tax paid to the state budget, AZN 1.321 billion – social and unemployment insurance fees paid to the State Social Protection Fund under the Ministry of Labor and Social Protection of the Population, Report informs referring to the Ministry of Taxes.

The ministry fulfilled the forecast on tax levy by 108.8% and the tax levy was up AZN 250 million or 7.4% from previous year. Oil sector constituted 70% of tax receipts, non-oil sector – 30%. In the reporting period, annual tax forecast was fulfilled by 49.7%, including annual tax forecast on non-oil sector was fulfilled by 51.1%.

In the first half of 2019, although the receipts from oil and gas sector were executed at 101.3%, they were 5.9% or AZN 1,087.5 million lower than previous year. This decline is being compensated by receipts from non-oil sector.

Tax receipts from non-oil sector increased by 14.3% or AZN 319 million to AZN 2.545 billion. Forecast on the non-oil sector was fulfilled by 112% and taxes were AZN 279 million more than forecast. Share of non-oil sector in the tax receipts reached 70%. Receipts from private section on the non-oil sector increased by 16%. Share of private section in eth non-oil tax receipts reached 77%. Share of voluntary payments on the tax receipts from non-oil sector made up 92%.