BAKU, Azerbaijan, May 28. In 2024, value-added tax (VAT) revenues in Azerbaijan totaled 8.89 billion manat ($5.2 billion), surpassing the forecast of 8.1 billion manat ($4.7 billion) by 790.3 million manat ($464.8 million) or 9.8 percent.
Data obtained by Trend from the draft law on the execution of the state budget of the Republic of Azerbaijan in 2024 shows that this marks an increase of 766.5 million manat ($450.8 million) or 9.4 percent compared to 2023.
Of the total VAT collected, 95.7 percent—or 8.51 billion manat ($5 billion)—came from the non-oil sector, while the oil sector accounted for 4.3 percent or 378.5 million manat ($222.6 million).
VAT from domestic operations alone amounted to 4.28 billion manat ($2.5 billion), exceeding the forecast of 3.64 billion manat ($2.1 billion) by 637.2 million manat ($374.8 million) or 17.5 percent. Contributions from the non-oil sector reached 3.9 billion manat ($2.2 billion)—up by 608.7 million manat ($358 million) or 18.5 percent compared to the forecast, and 592.7 million manat ($348.6 million) or 17.9 percent higher than in 2023.
The overperformance was partly due to an additional 409.1 million manat ($240.6 million)—11.7 percent more than projected—collected by the tax authorities. The year-on-year increase was also supported by a 6.2 percent real growth in non-oil gross domestic product (GDP) and a rise in taxable turnover in the non-oil sector.
Compared to 2023, taxable turnover grew across key sectors: in construction sector by 836.5 million manat ($492 million) or 4.4 percent; in transportation sector by 1.1 billion manat ($647 million) or 13.7 percent; in retail trade sector by 1.22 billion manat ($717.6 million) or 5.9 percent; in wholesale trade sector by 858.8 million manat ($505.1 million) or 4 percent; in banking and insurance sector by 1 billion manat ($588.2 million) or 15.6 percent.
As a result of these increases, VAT revenue rose by 154.7 million manat ($91 million) or 1.4 times in the construction sector, by 58.3 million manat ($34.2 million) or 13.7 percent in industry, by 41.8 million manat ($24.5 million) or 8.5 percent in wholesale trade, and by 21 million manat ($12.3 million) or 7.6 percent in retail trade.
The share of non-oil VAT in non-oil GDP rose by 0.3 percentage points, reaching 4.6 percent.
Meanwhile, VAT collected through customs authorities reached 4.6 billion manat ($2.7 billion), surpassing the forecast of 4.45 billion manat ($2.61 billion) by 153.1 million manat ($90 million) or 3.4 percent, and showing a 165.5 million manat ($97.3 million) or 3.7 percent increase compared to 2023.
