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Excise Rates on Domestic Alcohol Production to be Approximated to Import in Azerbaijan

Business Materials 9 November 2007 16:41 (UTC +04:00)

Azerbaijan, Baku / Trend corr. I.Khalilova / Within the framework of the program on joining Azerbaijan World Trade Organization (WTO) the government to proceed harmonization of rates on imported and domestic commodities, Azar Bayramov, the deputy Finance Minister of Azerbaijan, said.

"The proportion between excises on imported and domestic products is observed in alcohol productions in Azerbaijan. Now it is planning to approximate the rates of domestic products to imported ones," the deputy Finance Minister said.

The excise rates on imported alcohol products were increased by 1 or 2 times from 1 April 2007. Such an action was undertaken in order to develop wine-growing in the country.

In compliance with the decision of the Cabinet of Ministers the excise rates for commodities of 220300 (beer) increased from $0.7 per one litre to $1.0, 2204 (wine) from $1.5 to $2.5. And for commodities of 2205 and 220600 (vermouth and other wines) the excise increased from $1.5 to $2.5, 220820 (strong alcohol drinks), 220830 (whisk), 220840 (rum), 220850 (gin), 220860 (vodka), 220870 (liqueur) and 2208901100-2208907800 (vodka prepared from fruits) - from $3.0 to $6.0.   

The excise tax on transport was introduced in Azerbaijan in order to support of the national production. A zero rate is applied on cars, sport yacht and rest yachts, as well as other vehicles manufactured in Azerbaijan.

The tax rate on vehicle import of motor capacity to 2,000 cu centimeter is applied on AZN 0.15 per 1 cu centimeter, to 3,000 cu centimeter - AZN 300 + AZN 1 for each cu centimeter, to 4,000 cu centimeter AZN 1, + AZN 2 per each cu centimeter, more than 4,000 cu centimeter AZN 3,300 +AZN 4 per cu centimeter.

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