BAKU, Azerbaijan, July 10. Tax revenues from
Azerbaijan’s non-oil and gas sector have increased.


According to information posted on the website of the State Tax
Service under the Ministry of Economy of Azerbaijan, in the period
from January through June 2026, the agency collected 8.84 billion
manat ($5.2 billion) in taxes for the state budget, which is 217.7
million manat ($128.08 million) more than forecast.


In addition, it is noted that compared to the same period in
2025, tax revenues increased by 139 million manat ($81.7 million),
or 1.6%.


"Tax revenues from the non-oil and gas sector amounted to 7.6
billion manat ($4.4 billion), which is 199.4 million manat ($117.3
million) above the forecast. Compared to the corresponding period
of 2025, revenues from this sector increased by 645.8 million manat
($379.9 million), or 10.1%.


From January through June 2026, revenues from mandatory
contributions to the state social insurance system totaled 3.4
billion manat ($2 billlion), which is 189.9 million manat ($111.7
million) higher than the forecast. At the same time, revenues from
extrabudgetary organizations exceeded 2.24 billion manat ($1.3
billion)," the agency’s report states.







The report also emphasizes that over the same period, revenue
from unemployment insurance contributions totaled 122.1 million
manat ($71.8 million), exceeding the forecast by 6 million manat
($3.5 million): "Revenue from extrabudgetary organizations exceeded
92.5 million manat ($54.4 million)."


Based on information from the State Tax Service, revenue from
mandatory health insurance contributions exceeded 517.1 million
manat ($304.2 million), which is 13 million manat ($7.6 million)
higher than projected: "Revenue from extrabudgetary organizations
totaled more than 337.4 million manat ($198.5 million)."


Meanwhile, Azerbaijan's non-oil sector is
the central
pillar of the nation's economic diversification strategy,
representing over 71% of the country's total GDP and projected to
exceed 80% by 2029. Government and policy leaders
emphasize expansion in key areas like agriculture, food processing,
tourism, and chemicals.


According to Trend's analysis, Azerbaijan’s latest fiscal data
highlights a continued strengthening of non-oil and gas tax
revenues, underscoring the country’s ongoing economic
diversification efforts. During the first half of 2026, total tax
collections exceeded forecasts, reflecting stronger-than-expected
economic activity and improved compliance in the broader tax
system. The non-oil and gas sector alone generated 7.6 billion
manat ($4.4 billion), surpassing projections and showing solid
year-on-year growth of over 10%. This performance reinforces the
sector’s role as the primary engine of fiscal stability outside the
hydrocarbon industry. Meanwhile, rising contributions to social
insurance, unemployment insurance, and mandatory health insurance
systems indicate a broad-based expansion of the formal economy and
improved institutional revenue collection. These gains suggest that
Azerbaijan’s labor market and business environment are increasingly
formalized, which strengthens long-term budget sustainability.
Overall, the figures demonstrate that non-oil sectors are not only
expanding but also becoming more structurally significant in
supporting state finances and economic resilience.