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.
