Tax revenues in Azerbaijan’s non-oil sector grow as shadow market decreases

During the first five months of 2019, the turnover of Azerbaijan’s non-oil sector increased by 8 percent compared to the same period last year, Trend reports with reference to the Ministry of Taxes.

The increase in VAT turnover was 9.6 percent, according to the report.

The trade and public catering sector showed the highest growth rates. The wholesale trade turnover grew 18.4 percent, including 24.6 percent in terms of VAT. In the retail sector, the turnover increased by 37.3 percent, including 38.2 percent in terms of VAT. The turnover growth in public catering amounted to 20.6 percent.

The increase in turnover on electronic invoices is an important indicator of improved transparency in the conduct of business and the reduction of the shadow economy. In January-May 2019, the share of turnover of enterprises of the non-oil sector on electronic invoices amounted to 65.7 percent. In the same period last year, this figure didn’t reach 60 percent.

The highest growth rate of turnover on electronic invoices was recorded in agriculture (91.8 percent) and in trade (43.7 percent).

Transparency in the relations between the state and business, reduction of the shadow economy, legalization of business led to an increase in tax revenues from the non-oil sector, the ministry said.