16:31 - 17.09.2025

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September 17, Fineko/abc.az. The personal income tax in Azerbaijan should be introduced in such a way as not to encourage a return to the shadow economy, ABC.AZ reports, quoting MP Vugar Bayramov as saying this at today's meeting of the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship.

He recalled that the personal income tax exemption expires at the end of this year.

"Income benefits for individuals employed in the non-oil/gas and non-government sectors have been in effect for 7 years. It was quite a fundamental support - conditions were created for development of the private sector, including the legalization of employment, and the number of employment contracts increased. I propose to develop such mechanisms for personal income tax in the next period so that it does not encourage a return to the shadow economy. It would be advisable to apply lower tax rates if the benefit period is not extended, and then gradually increase tax rates. Setting a comparatively low tax rate may not create a serious burden for the private sector, which will eventually lead to the formalization of employment in the private sector and the whitewashing of the economy," the MP said.