Environmental tax may be introduced in Azerbaijan

The aspect of environmental taxation will be studied in Azerbaijan to prevent or limit activities that damage the environment, head of the Main Department of Tax Policy of the State Tax Service under the Ministry of Economy Nijat Imanov said in an interview with Report.

According to him, these issues will be discussed at a meeting of the joint working group of representatives of the World Bank and Azerbaijan: “Unlike the mechanisms of the previous Doing Business report of the World Bank, the indicator 'taxation' will cover a wider area, assess the complexity of tax regulation, the effectiveness of tax systems, tax burden, the level of optimality of costs for meeting the requirements. At the same time, the aspect of environmental taxation will be investigated to prevent or limit activities that are harmful to the environment," he said.

“In order to combat climate change and expand the use of 'green' technologies, best international practices will be studied in determining the scope of environmental and 'green' taxes. In this direction, it is necessary to continue tax incentives for the import and sale of hybrid cars, expand its coverage, establish incentives in relation to income received from the supply of electricity to the power supply network, produced from renewable energy sources by active consumers belonging to the category of the population and other issues," Imanov stressed.

He noted that, in general, 54 events for the next two years have been identified under the Roadmap.