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Proposal from an MP regarding income tax
Proposal from an MP regarding income tax
“One of the proposals I presented at the meeting of the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship was related to exempting the minimum wage from income tax. According to the newly proposed amendments to the Tax Code, starting from the new year, salaries of up to 2,500 manats in the private sector will be subject to a 3% income tax,” Vugar Bayramov wrote on his social media account.
“As in the public and oil-gas sectors, the amount exempt from taxation in the private sector is also set at 200 manats.
Considering that in most countries the minimum wage is exempt from income tax, introducing a similar practice in Azerbaijan would be appropriate. Exempting the salaries of citizens earning the minimum wage in both the public and private sectors from taxation is also desirable from a social protection standpoint. In this case, the tax-free amount could be set at 400 manats. Since the salaries of these citizens are not high, taxing their income is not advisable. Therefore, we propose exempting from income tax the salaries of citizens who receive the minimum wage in both the public and private sectors.”
The MP noted that linking the tax-free amount to the minimum wage could help increase the income of low-paid citizens in both the public and private sectors:
“In this case, when calculating income tax, the tax-free amount could be 400 manats instead of 200, which would directly lead to an increase in salaries. This means that citizens earning up to 2,500 manats could see a rise in their net income.”
“One of the proposals I presented at the meeting of the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship was related to exempting the minimum wage from income tax. According to the newly proposed amendments to the Tax Code, starting from the new year, salaries of up to 2,500 manats in the private sector will be subject to a 3% income tax,” Vugar Bayramov wrote on his social media account.
“As in the public and oil-gas sectors, the amount exempt from taxation in the private sector is also set at 200 manats.
Considering that in most countries the minimum wage is exempt from income tax, introducing a similar practice in Azerbaijan would be appropriate. Exempting the salaries of citizens earning the minimum wage in both the public and private sectors from taxation is also desirable from a social protection standpoint. In this case, the tax-free amount could be set at 400 manats. Since the salaries of these citizens are not high, taxing their income is not advisable. Therefore, we propose exempting from income tax the salaries of citizens who receive the minimum wage in both the public and private sectors.”
The MP noted that linking the tax-free amount to the minimum wage could help increase the income of low-paid citizens in both the public and private sectors:
“In this case, when calculating income tax, the tax-free amount could be 400 manats instead of 200, which would directly lead to an increase in salaries. This means that citizens earning up to 2,500 manats could see a rise in their net income.”