BAKU, Azerbaijan, June 12. Tax revenues
collected through the State Tax Service under Azerbaijan's Ministry
of Economy exceeded forecasts in 2025, with the largest
contribution coming from the oil and gas sector, particularly the
Shah Deniz project, according to the Chamber of Accounts.


The findings were included in the Chamber's opinion on the draft
law "On the Execution of the State Budget for 2025."


State budget revenues collected through the State Tax Service
totaled 16.36 billion manats ($9.62 billion) in 2025, exceeding the
forecast of 15.5 billion manats ($9.12 billion) by 855.2 million
manats ($503 million), or 5.5%. The figure was also 547.2 million
manats ($322 million), or 3.5%, higher than in 2024.


According to the Chamber, the increase was primarily driven by
corporate income tax and value-added tax (VAT) receipts generated
in the oil and gas sector, particularly within the Shah Deniz
natural gas project.


Profit tax revenues from contractor companies operating under
production-sharing agreements in the oil and gas sector reached
2.55 billion manats ($1.50 billion), surpassing the forecast by 602
million manats ($354 million), or 30.9%. The Chamber said revenues
generated by the Shah Deniz project accounted for a significant
share of that increase.







Tax revenues from the non-oil sector collected through the State
Tax Service amounted to 12.01 billion manats ($7.06 billion),
exceeding projections by 337.8 million manats ($199 million), or
2.9%.


The report noted that revenues from seven of the state's 13 tax
and revenue categories exceeded forecasts by a combined 408 million
manats ($240 million), or 13.9%. At the same time, six categories
recorded a combined shortfall of 1.26 billion manats ($743
million), or 10.1%, primarily related to VAT, profit tax and other
tax revenues.


The Chamber also cited a higher-than-expected average natural
gas selling price, which was 26.4% above forecast in 2025, as well
as fiscal stimulus measures, as key factors supporting VAT revenue
growth.


The number of active taxpayers continued to increase during the
year, reaching 860,000 as of Jan. 1, 2026, according to the
report.