Samira Musayeva: Aggressive taxation policy isn’t only way for transition to green economy

The Government of Azerbaijan believes that achieving sustainable economic development and transitioning to a climate-based green economy is possible not only through aggressive taxation policies or imposing additional taxes on businesses but also by incentivizing the use of renewable energy sources and green technologies through tax incentives, Samira Musayeva, Deputy Head of the State Tax Service, said at the conference themed "The Role of Small and Medium Businesses in the Green Economy" held in Baku, Report informs.

"In the tax reforms of the last five years, we can see a number of tax incentives related to supporting the transition to a 'green economy,'" Musayeva noted. "This applies not only to vehicles (electric cars) purchased by consumers or their chargers but also to industries transitioning to renewable energy."

Azerbaijan is carefully evaluating the implementation of carbon taxes and carbon pricing while considering their potential negative impacts on industries, Musayeva noted adding that the country is collaborating with international organizations such as the World Bank, Asian Development Bank, Organisation for Economic Co-operation and Development (OECD), and Harvard University in this regard.

"We are learning from their experiences, jointly discussing the challenges posed by current practices, and determining the right taxation policy for our country," Musayeva said.