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Excise Tax for Motor Transport not Affecting Imports to Azerbaijan

Business Materials 1 June 2007 20:32 (UTC +04:00)

Azerbaijan, Baku / Trend corr I. Khalilova / Imposing an excise tax to motor transport imported to Azerbaijan from abroad has not caused a decrease of incomes to the public budget, the Chairman of the State Customs Committee, Aydin Aliyev, said on 1 June. Up to 2007, motor car import was levied only by highway-user tax.

"Import of transport into Azerbaijan profoundly increased in 2006, compared to previous years, due to suppositions on increase of tax burdens on import. However, it stimulated the incomes in the budget, Aliyev said. As a result, over 70,000 motor-transports have been imported to Azerbaijan, and the supply has not decreased this year. In January-April, 24,000 transports of all types were imported into the country ( 21,000 in the same period of 2006).

Given the dynamics, the forecasts for excise tax imposed on imported goods has increased by AZN 10mln (AZN 70mln).

On 1 June 2007, in accordance with the Tax Code, the excise tax for import of motor-car transport with the volume of engine of up to 2,000cu cm has been defined at AZN 0.15 per 1cu cm, with engines up to 3,000cu cm at AZN 300 + AZN 1 per every cu cm over 2,000cu cm, with engines up to 4,000cu cm at AZN 1,300 + AZN 2 per every cu cm over 3,000cu cm, with engines over 4,000cu cm at AZN 3,300 + AZN 4 per each cu cm over 4,000cu cm.

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