Azerbaijan.US
Prominent Azerbaijani economist Natig Jafarli has warned that the government’s growing reliance on higher taxes, tariffs, and fees is weakening economic activity and accelerating economic contraction.
In a Facebook post, Jafarli argued that authorities increasingly treat every manat collected from citizens as a fiscal gain, rather than focusing on policies that stimulate economic growth.
“Taxes, tariffs, and fees will continue to rise because the government’s target is fundamentally wrong,” Jafarli wrote. “The goal is to generate additional budget revenue at the expense of citizens, whereas the real priority should be increasing economic activity for citizens. In that case, both the budget and society would benefit.”
According to the economist, Azerbaijan’s core economic challenge is not declining budget revenues, but slowing GDP growth and reduced economic dynamism. He stressed that higher fiscal pressure directly limits consumer spending and investment.
“When people pay more in taxes and tariffs, they have less money to spend elsewhere. Consumption falls, purchases decline, and the economy contracts even further,” Jafarli noted.
He concluded by calling on society to push for a change in economic policy direction in 2026, urging a shift away from revenue-driven pressure toward growth-oriented reforms.
