## Current and Proposed Non-Oil Tax System in Azerbaijan

_IMF Working Papers, September 1, 2008_

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**Canonical URL:** [Current and Proposed Non-Oil Tax System in Azerbaijan](https://www.imf.org/en/publications/wp/issues/2016/12/31/current-and-proposed-non-oil-tax-system-in-azerbaijan-22342)

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## Bibliographic details
- Published: September 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451870831.001

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### Main findings
- 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.
- There is scope for strengthening tax and customs administration.
- The overall reform package could be made broadly revenue neutral by improving taxpayers' compliance and reducing exemptions.

### Short-term measures (recommended)
- Expand the tax base.
- Improve tax and customs administration to yield more revenues.

### Medium-term reforms (recommended)
- Consider more far-reaching reforms including reducing some direct tax rates.
- Pair rate reductions with measures to improve compliance and reduce exemptions to maintain broad revenue neutrality.

### Subject focus and keywords
- Subject: Corporate income tax, Income and capital gains taxes, Personal income tax, Revenue administration, Value-added tax
- Keywords: direct tax, income tax, revenue, tax rate, VAT, WP

*International Monetary Fund. "Current and Proposed Non-Oil Tax System in Azerbaijan", IMF Working Papers 2008, 225 (2008), accessed 9/23/2026, https://doi.org/10.5089/9781451870831.001*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/current-and-proposed-non-oil-tax-system-in-azerbaijan-22342_