10% Tax on Dinner – Forced Tips or Fair Pay?

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Baku, September 27, 2025

A growing number of restaurants in Baku are automatically adding a 10% service charge to bills – a practice that is dividing opinion among diners and stirring public debate.

For some, the surcharge is a fair way to recognize the work of waitstaff.

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“We agree with it, because we know salaries are low. If the waiter is attentive and communicative, this is a way to show respect,” one customer told reporters.

Others see it as an unfair extra cost.

“Prices are already high. Service is part of what we’re paying for in the food. Why should it be mandatory?” asked another diner.

Restaurants defend the charge

According to Elman Humbatov, speaking to KhazarTV, an employee at a Baku restaurant, the fee is built into internal rules. Roughly 10% covers broken dishes and utensils, while the rest is distributed among waiters and staff.

“Almost everyone pays by card now, which means cash tips have nearly disappeared. We can’t demand them, so the service charge ensures staff get some extra income,” he explained.

Not the same as tipping

Samir Dyubendi, head of the Hotel and Restaurant Association, stressed that service fees should not be confused with tips.

“Service charges are introduced voluntarily by restaurants, and they’re most common in fine-dining venues. Fast food or casual dining spots usually don’t apply them,” he noted.

Legal grounds

Lawyer Samir Gasimov underlined that service charges are legal only if customers are informed in advance.

“If the fee is listed in the menu, there’s no problem. But if diners discover it only when the check arrives, they have every right to refuse payment,” he said.

A wider debate

For restaurants, the charge has become a way to sustain staff motivation in a cashless age. For customers, it raises broader questions about transparency: whether the issue is the fee itself, or the lack of clarity in how it’s applied.

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