The draft amendments to Azerbaijan’s Tax Code have been submitted for discussion in the third reading at the parliament’s meeting, Report informs.
The amendments suggest an increase in excise taxes on cars with a large engine capacity.
The following changes are proposed:
- if an engine volume is up to 4,000 cubic centimeters, the excise tax will be 5,600 manats + 15 manats (now 13 manats) for each cubic centimeter for a part of the engine of 3,001-4,000 cubic centimeters. The tax amount of 5,600 manats for cars with engine capacity of up to 4,000 cubic meters remains unchanged.
- if an engine volume is up to 5,000 cubic centimeters, the excise tax rate will be 20,600 manats + 40 manats for each cubic centimeter for a part of the engine of 4,001-5,000 cubic centimeters (now 18,600 manats + 35 manats for each cubic centimeter).
- if an engine volume is over 5,000 cubic centimeters, the excise tax rate will be 60,600 manats + 80 manats for each cubic centimeter for a part of the engine over 5,000 cubic centimeters (now 53,600 manats + 70 manats for each cubic centimeter).
Besides, an additional coefficient will be applied to the excise tax on imported vehicles over seven years old. According to the bill, new vehicles with a hybrid engine will be exempt from VAT on imports. Electric vehicles won’t be subject to VAT on both import and domestic sales.
The bill was put to a vote and adopted in the third reading.