ABSTRACT
The purpose of the article is to examine the relationship between taxes and economic growth in Azerbaijan, which is rich in oil and gas reserves. The study covers the years 2005-2023. The growth of total and non-oil GDP is included in the model as a dependent variable, and the volume of capital, tax revenues to the budget, changes in oil prices, and total foreign trade are included as independent variable. When calculating quarterly indicators, inflation was taken into account and processed using the ARDLBT model. It has become known that tax revenues in Azerbaijan have a negative impact on the growth of both total and non-oil GDP in the long term. The effects of other independent variables were statistically significant and positive. In the short term, the impact of taxes on overall GDP has not been identified, but a negative impact on the growth of non-oil GDP has been found. Among other indicators, only changes in oil prices have a positive impact on overall GDP in the short term. These results are consistent with modern theories. Limited data on revenues by tax type made it impossible to assess the impact of various tax types on economic growth. The results support the idea of pursuing a policy that reduces the tax burden of this sector in order to increase non-oil GDP. A study of the impact of tax revenues on non-oil GDP growth can provide substantiated arguments for making decisions on the distribution of the tax burden to increase the weights of tax types that do not have a negative impact on economic growth.

Keywords: Tax revenue, tax types, economic growth, non-oil GDP, oil and gas reserves.

JEL kod: E62, H21, O47