Mikayil Jabbarov: Amount of revenues due to legalization has tripled

In Azerbaijan, the revenues obtained through the whitening of the number of hired workers and the wage fund - in other words, the reduction of the shadow economy - have increased more than threefold in real terms, stated Minister of Economy Mikayil Jabbarov during a dialogue session titled "Transformation of Informal Settlements and Slums: Housing Provision for the World," organized within the framework of the 13th session of the World Urban Forum (WUF13) held in Baku, Report informs.

"Previously, people remained outside the social protection system, received their wages in cash, and the state did not receive any taxes or social payments from those activities. As a result of reforms, people are being integrated into the social security system, and part of the funds received from social insurance payments is directed toward housing provision for individuals in need of social protection. Thus, this process both ensures community support and creates a sustainable financial mechanism for the state," he noted.

The minister also said that the government's approach has been balanced: "On the one hand, the rights and social needs of citizens are taken into account, and on the other hand, the strengthening of legal discipline and responsible land management in accordance with standards is ensured. Politicians and governments face such a dilemma. It is precisely for this reason that Azerbaijan has established a special target program covering the years 2019–2025. Within the framework of that program, the process of legalization of informal employment and residential areas has been carried out. The goal is to create additional financial sources for solving the same problem."