Recently, an increase has been observed in the prices of food products, customs duties, and transportation costs. The rise in gas and electricity tariffs also directly affects the daily expenses of the population. The increase in taxes further burdens both entrepreneurs and other citizens financially. Will this rise in food prices, taxes, and communal expenses continue next year?
In a statement to Medianews.az, the head of the Economic Analysis Institute, Məhəmməd Talıblı, said that price increases in Azerbaijan actually occur continuously:
“This process proceeds with inertia, in a spiral manner, not very noticeable, not conspicuous. As a result, there are slight increases in the indexation part of some population groups, including pensioners, but their incomes cannot catch up with rapid price increases. There are even wage earners whose incomes do not increase at all. The incomes of wage earners (1.7 million people) cannot keep up with rising prices, let alone vulnerable social groups keeping pace. This is a serious problem.
Through tax increases, regardless of which social group they belong to, some portion of the population's income will reach fiscal bodies. This will cause the collections of state fiscal institutions to increase compared to business entities and population groups in terms of income distribution. This, by reducing income channels, will drive an increase in state budget revenues.”
Economist expert Eyyub Kərimli also shared his views on the topic with our site. He said that the sectors where taxes will be applied in 2026 have already been confirmed. According to the expert, 3 percent will be withheld from salaries, and for entrepreneurs, 2 percent will be withheld from turnover related to the Social Protection Fund. The tax increases for the next year have also been determined.
Regarding communal expenses, the expert could not specify a concrete figure: “This is resolved in some cases based on proposals or appeals from state institutions. It is not yet possible to express a definite opinion on this matter.”
He noted that these increases could cause some inflationary effect and price increases might also be observed in other sectors: "Regarding food products, price increases are felt in some cases. Currently, a significant price increase is observed in meat products, but the increase in meat imports from abroad may cause a drop in local product prices."
The expert added that the situation related to foot-and-mouth disease could influence price changes: “In the future, meat prices may both increase and decrease.”
Oğuz Ayvaz,
Medianews.az
