Current and Proposed Non-Oil Tax System in Azerbaijan

Author/Editor: Zermeño Livas, Mayra Rebecca
Publication Date: September 01, 2008
Electronic Access: Free Full text (PDF file size is 486KB).
Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper analyzes developments in non-oil tax policy, administration, and revenues in Azerbaijan, and suggests measures for further improvement. The main finding is that Azerbaijan's non-oil tax revenues increased significantly as a share of non-oil GDP in the last five years, but remain below potential. The non-oil tax revenue shortfall is mainly due to widespread exemptions, but there is scope for strengthening tax and customs administration. In the short term, expanding the tax base and better tax and customs administration will yield more revenues. In the medium term, more far-reaching reforms including reducing some direct tax rates, should be considered. The overall reform package could be made broadly revenue neutral by improving taxpayers' compliance and reducing exemptions.
Series: Working Paper No. 08/225
Subject(s): Tax systems | Azerbaijan | Nonoil sector | Tax policy | Tax revenues | Customs administration | Tax reforms | Value added tax

Author's Keyword(s): Azerbaijan | non-oil taxation | non-oil tax policy | non-oil tax administration
Publication Date: September 01, 2008
Format: Paper
Stock No: WPIEA2008225 Pages: 19
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to