Azerbaijan may extend tax breaks for electric and hybrid vehicles

Tax incentives for electric and hybrid cars in Azerbaijan have not only contributed to environmental protection but also to the market revival in this area, Vusal Abbasov, Head of the State Programs Management Department of the Azerbaijan Land Transport Agency (AYNA), said at the panel discussion "Development of Infrastructure for Electric Cars in Azerbaijan" organized within the framework of the 22nd Caspian International Transport, Transit and Logistics Exhibition held in Baku, Report informs.

According to Abbasov, in 2024, the number of electric cars increased 10 times compared to 2022, and the number of hybrid cars increased 2 times.

"This increase also affected the renewal of the car fleet. If in 2022, passenger cars up to 5 years old accounted for 4.6% of the total number of vehicles, in 2024 this figure reached 6.4%. That is, there was an increase of about 2 percentage points," he said.

Abbasov noted that these results are related to the activities of a subgroup established within the Azerbaijani government's business rating and commission: "The subgroup has been operating since 2021 and relevant measures have been implemented based on the roadmaps covering the years 2022–2024. Those reforms were also implemented following the measures envisaged in this roadmap. Since 2023, the activities of the subgroup have been coordinated by AYNA. In 2024, the roadmap measures were implemented, and currently, measures for 2025 are being implemented."

The head of the department added that tax breaks under the current program are planned to remain in effect until 2026:

"An assessment is being made on whether to continue the concessions for the period after 2026. As envisaged in the roadmap, the situation will be analyzed, appropriate proposals will be prepared and submitted to the government."