Orkhan Nazarli: Integration of cryptocurrencies into tax policy requires formation of new mechanisms

Combating climate change and promoting a green economy require restructuring tax policy, Head of the State Tax Service Orkhan Nazarli said in an interview with the official website of the Intra-European Organization of Tax Administrations (IOTA), Report informs.

He noted that tax administrations need to implement tax formats that support new environmental initiatives: "The introduction of tools such as “green taxes” and carbon taxes is one of the significant challenges tax authorities face. IOTA members are also trying to adopt new technologies (such as artificial intelligence, blockchain, and other digital tools) to make tax collection and control systems more efficient. However, legal, technical, and social challenges may arise during the development and implementation of these technologies. Finally, it is essential to align tax policies at the international level and strengthen cooperation between tax administrations. The adoption of global tax agreements and cooperation among European countries is crucial, particularly in preventing tax optimization strategies used by multinational corporations and taxpayers benefiting from 'tax havens,'" he noted.

"The global economy has entered a new phase—one marked by emerging challenges that set new goals for tax systems. We plan to shape IOTA’s activities in the medium term in line with these ongoing changes and, in addition to strengthening our ties with European countries, we consider it important to build relations with tax authorities from other regions," he added.