Azerbaijan introduces excise duty on import of precious metals
Baku, Azerbaijan, Dec. 30
By Maksim Tsurkov - Trend:
Azerbaijan's parliament Milli Majlis adopted Dec. 30 the extension of the list of imported excisable goods and the inclusion of precious metals and products into it.
Under the draft amendments and additions to the Tax Code, starting from the next year, the excise duty will be imposed on platinum, gold, jewelry and other household items made of gold, platinum, and the processed, sorted, faceted and fixed diamonds.
Currently, the list of imported excisable goods includes alcohol, beer, all types of alcoholic beverages, tobacco products, petroleum products, cars, sports and leisure yachts.
"The taxable amount will be determined based on each gram of platinum per troy ounce of gold and gold jewelry and household goods, as well as per each carat of fixed diamonds," the draft law said.
Under the document, the taxation doesn't cover 20 grams of gold and gold jewelry or household goods, 0.5 carat of processed, sorted, faceted and fixed diamonds imported by individuals.
"Given the changes made, the excise doesn't cover gold, platinum, processed, sorted, faceted and fixed diamonds imported to be placed in the assets of Azerbaijan's Central Bank, as well as the gold imported to be placed in the assets of Azerbaijan's State Oil Fund," the draft law said.
Until now, the list of the goods exempt from excise tax included three liters of alcoholic beverages and 600 cigarettes, imported by individuals for personal use, as well as, fuel in the tank of a car of an individual in the volume set by the registration certificate.
According to the draft law, the new excisable goods will be subject to excise duty during their import at the following rates: 2 AZN per gram of platinum, 0.8 AZN per gram of gold and gold products of 375 hallmark, 1 AZN - of 500 hallmark, 1.2 AZN - 585 hallmark, 1.5 AZN - 750 hallmark, 1.8 AZN - 958 hallmark, 2 AZN - 999 hallmark.
The excise rate per carat of processed, faceted, sorted and fixed diamond will stand at 200 AZN.
If the weight of a diamond is below one carat, the amount of excise duty will be reduced in direct proportion to its mass.
If the weight of a diamond exceeds one carat, the excise duty is calculated using the following excise tax coefficients, depending on the actual mass of the diamond: the coefficient is 2.0 for a diamond with a mass of one to two carats, from two to three carats the coefficient is 3.0, from three to four carats - 4.0, from four to five carats - 5.0, above five carats - 10.0.
The official exchange rate for Dec. 30 is 0.7844 AZN/USD.