Baku: The World Bank's 2024 Enterprise Survey (WBES) has highlighted that 16.5% of Azerbaijani companies are dissatisfied with the current tax rates, marking it as the primary obstacle to their operations.

According to Azeri-Press News Agency, the survey analyzed responses from 368 officially operating companies in Azerbaijan, revealing significant concerns regarding the country's tax system.

Companies have expressed that tax obligations are burdensome relative to their actual business turnover, a sentiment particularly pronounced among small and medium-sized enterprises (SMEs). Entrepreneurs report that the process of preparing and submitting tax declarations is both complicated and time-consuming, with vague tax regulations and frequently changing rules adding to their planning difficulties.

Despite the widespread implementation of electronic tax filing, challenges persist due to technical limitations and low digital literacy in certain regions, hindering the effectiveness of the system. Furthermore, officially registered companies are frustrated by the presence of businesses operating illegally and evading tax obligations, which creates an unfair competitive environment and undermines compliant firms.

Overall, the World Bank's survey underscores the tax burden as a critical issue in enhancing Azerbaijan's business climate. A stable, transparent, and simplified tax system is seen as essential for not only increasing tax revenues but also improving the investment environment, reducing the shadow economy, and promoting fair competition.