No reason to raise cost of travel, other services in Azerbaijan, ministry says
Baku, Azerbaijan, Jan. 13
By Azad Hasanli - Trend:
There are no reasons to increase the cost of travel on public transport and other services in Azerbaijan with regard to a 0.02 AZN increase in gasoline prices, the Azerbaijani Economy and Industry Ministry told Trend Jan. 13.
The official exchange rate for Jan. 13 is 0.7844 AZN/USD.
The ministry said the changes affected only the mechanism of charging road tax, which in 2015 was withdrawn from technical inspection of vehicles and put into the cost of fuel.
The ministry also said that there has been no appeal to the Tariff (Price) Council on this matter.
Under a decision of the Tariff (Price) Council, made earlier, the retail price of the AI-92 gasoline will be 0.72 AZN, and diesel fuel - 0.62 AZN, while the increase affected the wholesale prices of gas and the Premium Euro 95 and Super Euro 98 gasoline brands.
The retail price of AI-95 (Premium) gasoline fell in Azerbaijan on Oct. 1, 2014 from 0.97 AZN to 0.95 AZN per liter, while the price of gasoline with an octane rating of 98 stands at 1.03 AZN per liter.
"The inclusion of the road tax to the gasoline price simplifies the payment and collection of taxes, while people using cars less, pay less taxes," the ministry said.
The ministry also said that in this case, the annual road tax is paid not once, but gradually with the purchase of gasoline, and the process of submitting declarations on road tax gets abolished for legal entities, while tax collection is provided in full.
Thus, as the ministry said, only the mechanism of payment of road tax was changed, and this doesn't affect the cost of passenger transportation by public transport.
According to the amendments to the Tax Code, under which a decision was taken to change the gasoline prices, starting from 2015, the vehicles of foreign countries, paying road tax while entering and departure from Azerbaijan, are subject to taxation.
The gasoline, diesel fuel and liquid gas produced in Azerbaijan for domestic consumption or imported from abroad are subject to taxation as well.
Accordingly, the country's car owners are exempt from road tax.
Edited by SI
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