VAT growth rates in Azerbaijan exceed non-oil GDP by almost 5%

The share of VAT, excise taxes, and income tax in Azerbaijan’s tax revenues increased from January through March 2021, the country’s State Tax Service told Report.

The growth rates of VAT, excise taxes, trade tax, and income tax in the non-oil sector exceeded the nominal growth rate of non-oil GDP by 4.9%. In the composition of tax revenues from the non-oil and gas sector, the share of VAT rose to 35.2%, on profit tax - up to 29.1%, on income tax - up to 18.1%, and on excise taxes - up to 6.2%. The high dynamics of the growth is observed thanks to the transparency of turnover.

In the first quarter of this year, there was an increase in tax revenues in several areas of the non-oil and gas sector. The highest growth rates of revenues compared to the same period last year were recorded in communications (41.5%), industry (23.1%), services (15.7%), trade (2.5%), and other spheres of activity (6.6%).