Azerbaijan should establish a new Technology Innovation Fund – jointly financed by the state and private sector – to significantly expand direct financial support for startups, digital transformation, scientific research and technology-driven projects.
The proposal was made by MP Tahir Mirkishili during the first reading of the 2026 state budget bill in the Milli Majlis, Report writes.
A dedicated fund for scaling innovation
According to Mirkishili, such a fund would strengthen Azerbaijan’s innovation ecosystem by improving access to capital, supporting early-stage companies, and accelerating the development of high-tech industries.
Tax incentives must depend on productivity
The MP also called for a redesign of the tax incentive system by tying exemptions and benefits to measurable performance indicators-labor productivity, job creation and export growth.
He suggested that companies receiving VAT and profit tax incentives should be required to submit annual performance reports, enabling the government to assess whether these incentives actually deliver tangible results.
Regular assessment of incentives
Mirkishili further proposed drafting an official “Tax Incentive Effectiveness Report” every three years to improve transparency and broaden the tax base.
He pointed to the Cabinet of Ministers’ decision to reduce customs duties to 0% for 272 types of raw and intermediate goods used in domestic production for a period of seven years starting January 1, 2024.
According to the MP, this measure is already contributing to positive export dynamics.
