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September 10, 2025Scientific HorizonsOpen Access

Comprehensive analysis of shadow economy countermeasures and taxation of hidden income in the agricultural sector of the Republic of Azerbaijan

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Comprehensive assessment finds 40% informal employment in agriculture, suggesting urgent tax reforms for stability.

Approximately 40% of agricultural workers are in the informal sector, leading to significant tax revenue losses.
Tax revenue losses exceed 1 billion USD annually, severely affecting the state’s financial stability.
Current tax policies fail to incentivize formal employment, limiting legal business growth and access to finance.
Comprehensive reforms in taxation procedures could enhance economic conditions and protect workers' rights.

Babayev et al. (2024) studied this question.

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