Baku: Starting next year, Azerbaijan will implement an increased excise tax rate for passenger cars that are imported and older than 7 years, APA reports. This change is part of an amendment to the Tax Code, which was discussed and approved during today’s session of the Milli Majlis.
According to Azeri-Press news agency, the current excise rate for passenger cars in Azerbaijan is based on engine volume. The rate starts at 0.30 manats per cubic centimeter for engines up to 2000 cubic centimeters, with the rate increasing for larger engines. For example, engines up to 3000 cubic centimeters incur 600 manats plus 5 manats for each cubic centimeter from 2001 to 3000 cubic centimeters. The tax continues to rise significantly for larger engines, with those over 5000 cubic centimeters being taxed at 53,600 manats plus 70 manats for each cubic centimeter exceeding 5000 cubic centimeters.
For cars with an engine capacity over 3000 cubic centimeters and older than 3 years, the excise calculations differ. For instance, engines up to 4000 cubic centimeters incur 5600 manats plus 15 manats for each cubic centimeter from 3001 to 4000 cubic centimeters. For larger engines, the excise rates increase considerably.
Currently, cars older than 7 years imported into Azerbaijan have their excise tax calculated by multiplying the base amount by a coefficient of 1.2 for petrol engines and 1.5 for diesel engines. However, the draft amendment proposes that from January 1, 2026, these coefficients will be increased to 1.5 for petrol engines and 2 for diesel engines, thereby raising the tax burden on these older vehicles.
The proposed changes were discussed in detail and the bill was successfully adopted on its third reading by the Milli Majlis.