The process of opening up the Azerbaijan economy and the change in the tax system

After the restoration of state independence in 1991, the Republic of Azerbaijan began to implement its sovereign rights in the economic field and to implement independent policies. The main directions of this policy were the economic system based on various forms of ownership, created on the basis of the transition to a market economy and integration into the world economy. After the Republic of Azerbaijan gained state independence, one of the most important aspects of its foreign economic policy has become relations with international financial, credit and economic institutions. Azerbaijan was admitted in 1992 to the members of IMF, World Bank, European Bank for Reconstruction and Development, Islamic Development Bank and Asian Development Bank in 1999. Cooperation relations between the IMF and Azerbaijan were established in the context of the structural reform program. In the preliminary evaluation of cooperation relations, the economic impact of the programs implemented by the IMF in Azerbaijan is great. During the restoration of independence, the structural reform program with the financial support of the IMF contributed to balancing the internal and external balance and ensuring economic stability. Fiscal policy in Azerbaijan is based on four pillars: tax, expenditure, debt and others. This policy affects the increase in income through the expenditures it produces, and the effect of the decrease in income through the taxes it collects can be noticed. The fiscal policy of Azerbaijan consists of a set of measures implemented by the state regarding the accumulation, distribution and use of financial resources. The Azerbaijani state also became the main subject of ongoing financial policy, for perspective it determined the strategy of the main directions of financial development, tactics of actions in the coming period and ways to achieve economic goals.