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Azerbaijan plans to impose differentiated road tax for imported cars

Business Materials 28 January 2011 19:19

Azerbaijan, Baku, Jan.28 / Trend, U. Ismayilova /

The Azerbaijani State Customs Committee (SCC) is developing proposals in connection with the applying quotas for cars arriving in Azerbaijan from Russia, Ukraine and Georgia, Ilgar Ibrahimov, deputy head of the Road Taxes Division of the Chief Department for Financial-Tariff and Currency Control of the SCC.

"According to the State Customs Committee's proposals quotas at 30 days will be introduced for passenger buses and trucks," Ibragimov said. Previously it was offered to approve quotas at 14 days, but the Azerbaijani Transport Ministry didn't agree.

According to him, at present a great number of trucks and buses arrive in Azerbaijan mainly from these three countries, which currently are exempt from tax for the stay here, as Azerbaijan does not apply the quota system towards those countries.

"The presence of a large number of such vehicles in the country impedes work and development of internal transport, as well as the local population's activity," Ibrahimov said.

The main goal of the introduction of a 30-day quota is increasing revenues to the budget by collecting taxes, as well as protection of the interests of the internal market and transport. A road tax will be paid for additional time of stay in the country, which is in accordance with existing tax law is set at $15 per day for buses and $ 20 - for trucks.

However, he said, the quota system will not apply to passenger cars.

The Customs Committee also proposes the introduction of a differentiated system on road tax for imported cars in the country. Ibrahimov said that at present, the level of tax for all cars is $ 15, while the SCC proposes to increase it and to determine depending on engine size.

"The new proposals will be submitted by the SCC to the government in February," Ibrahimov said.

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