Azerbaijan may continue harmonization of excise rates on imported and domestic goods

Business Materials 24 January 2011 19:55 (UTC +04:00)

Azerbaijan, Baku, Jan. 24 / Trend I.Khalilova /

In 2011, Azerbaijan can continue the harmonization of excise rates on imported and domestically produced goods, Azerbaijani Deputy Finance Minister Azer Bayramov said. The World Trade Organization puts forward such a demand within the framework of Azerbaijan's accession to membership in this organization.

"The activities over the unification of excise taxes may be reflected in the draft amendments to the country's tax code, which must be developed before 15 May 2011," Bayramov said. "We have still a difference between rates on imports and domestic production, and today we are talking about unification, or reducing the difference between the excise rates."

He said the ratio between excise taxes on imported good and goods sold in the domestic market remains on tobacco and alcohol products. It is expected to bring difference to the averaged index by increasing excise taxes on domestic products and approach to import prices. The unification of the rates is also possible through the reduction of import excise taxes.

The increase in the difference between rates on domestic and imported alcoholic beverages has occurred after the increase of excise taxes on imported alcoholic beverages by 1.5-2 times from April 1, 2007. They were revised in order to stimulate the development of viticulture in the Republic, t more effectively use the  capacity of wineries and protect the domestic market, as well as management of budget revenues from this sector.

Based on the Cabinet of Minister's decision, the excise rates for the heading "220300" (beer) increased from $0.7 per 1 liter to $1, "2204" (Wine) - from $1.5 to $25 (except "2204301000" - grape liquid, manufactured by freezing, pigment or other additives drink alcohol. Here, as before, the rate remains $0.05 dollars for 1 liter). For the heading "2205" and "220600" (Vermouth and other wine of fresh grapes), the excise tax increased from $1.5 to $2.5 , "220820" (strong alcoholic beverages obtained by distillation), "220830" (whiskey) " 220840 "(rum)," 220850 "(gin)," 220860 "(vodka)," 220870 "(liquor) and" 2208901100-2208907800 "(vodka, made from fruit) - from $3.0 to $ 6.0.

In 2007, the country also introduced the excise tax on motor vehicles to support national production. In the local market applied a zero rate for cars, sport boats and yachts, designed for relaxation, as well as other means of navigating, produced in Azerbaijan.

The tax rate on imports of vehicles with engine capacity up to 2,000 cubic centimeters was introduced at the level of 0.15 manat per 1 cu meter, up to 3,000 cubic meters. - 300 manat + 1 manat for each cube over 2,000 cubic meters, up to 4,000 cubic meters - 1,300 manat  + 2 manat per cu. over 3,000 cubic meters, over 4,000 cubic meters. cm - 3,300 manat + 4 manat per cu. more than 4,000 cubic meters.