Reforming the Taxation of Agrarian Entrepreneurship (Case Study of Azerbaijan)

Abstract

The relevance of the stated topic of study is determined by the fact that the bulk of tax revenue in transition economies comes from agrarian entrepreneurship. The purpose of the study was to develop practical recommendations that would resolve most of the issues in the agribusiness sector in transition economies. The key research methods are a qualitative combination of modelling, analogy, deduction, and induction, which allowed for a comparative characterisation and identification of the most effective options for reforms in the agricultural sector. It was determined that the creation of a favorable tax environment would contribute to increasing the efficiency of agrarian business, which in turn would lead to the improvement of basic economic indicators. It was established that over the past ten years, many positive changes have taken place in the tax sector of Azerbaijan, which have improved the overall efficiency of the country's tax system. This made it possible to increase the amount of income to the state budget of the country. Having analysed the experience of other countries and studied in more detail the advantages and disadvantages of the tax system in Azerbaijan, it became possible to provide key recommendations to improve performance in the area. The results of the study present reforms to improve the agricultural taxation system, which account for the socio-economic characteristics of Azerbaijan and can be used as recommendations in further studies aimed at improving the taxation of agribusiness. The impact of various reforms on the functioning of the tax system in light of the proposed changes was estimated. The results of this investigation have practical value for employees of the tax authorities of Azerbaijan and scientists who will continue studies in this regard