Baku, August 5, AZERTAC
The legalization and transparency of labor relations have driven a significant surge in the revenues of the State Social Protection Fund, more than doubling its income. Consequently, the share of state budget transfers allocated to the fund has decreased, Orkhan Nazarli, Head of the State Tax Service under the Ministry of Economy, said in an interview with AZERTAC and REAL Television.
According to him, the key objective of the labor income benefits introduced in the non-oil private sector was to legalize labor relations. "Compared to 2019, labor contracts in this sector have surged by 91 percent, surpassing 1 million. Over the same period, labor income increased 2.5-fold, which is an estimated increase of 6.5 billion manats," Nazarli noted.
"Current observations show no indication of activity reverting to the shadow economy, and it is possible to ensure the sustainability of these outcomes,” the Head of State Tax Service added.