Azerbaijani businesses that raise employee salaries or create new jobs should be granted a 50 percent discount on taxes and social insurance contributions, according to a proposal made in parliament by lawmaker Tahir Mirkishili.
Speaking during discussions on the draft law “On Amendments to the Tax Code” at a meeting of the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship, Mirkishili said such incentives could encourage companies to move away from informal practices in wage increases.
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“These advantages could motivate entrepreneurs to abandon non-transparent methods of raising salaries,” he said. “Many businesses tend to conceal wage increases to avoid additional tax burdens.”
The MP noted that tax incentives should promote transparency, formal employment, and higher incomes for citizens, while strengthening the country’s system of social protection.
