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Nazrin Abdul

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Azerbaijan does not intend to abandon state oversight of the economy but rather transform it into a more efficient and modern system, Deputy Prime Minister Samir Sharifov said at a forum in Baku.

As reported by AzerNEWS, speaking at the forum titled “Vision for the Future of the Tax System: A New Governance Model and Data-Driven Decisions,” Sharifov said relations between the state and business in Azerbaijan are entering a new phase.

He stressed that sustainable economic growth cannot rely solely on administrative regulation.

“Economic development is possible not only through administrative regulation but through a system of relations based on trust,” Sharifov said. “Predictable policies, clear rules and a stable approach are key indicators of a healthy business environment.”

The deputy prime minister noted that the government’s goal is not to eliminate or significantly reduce oversight, but to reshape it.

“The objective is to make oversight smarter, more efficient and better aligned with economic processes,” he said, adding that efforts to reduce the shadow economy should be seen as part of this systematic and institutional approach.

Sharifov also highlighted the importance of well-defined fiscal priorities, efficient public spending and stronger non-oil revenue sources in Azerbaijan’s budget policy.

“In this context, tax policy should not be viewed solely as a tool to maximize fiscal revenues,” he said. “It must also serve as an important instrument that shapes economic behavior, influences investment decisions and helps maintain social balance.”

According to Sharifov, taxes and mandatory social contributions should not suppress economic activity. Instead, they should encourage entrepreneurship while simultaneously ensuring a stable financial base for funding social obligations and safeguarding public welfare.