Azerbaijan increases tax on import of cars, yachts

By: Nigar Orujova

Azerbaijan has increased the excise rates on imported cars, yachts for leisure and sports and other vessels imported for the same purpose, said draft amendments and additions to the Tax Code, discussed at a meeting of the parliamentary committee on economic policy on December 29.

The amendments noted that the share of excise tax in the cost of passenger cars with an engine capacity of up to 2,000 cubic centimeters has been set at 0.2 manats per each cubic centimeter, up to 3,000 cubic centimeters – at 400 manats (plus one manat for each cubic centimeter with an engine capacity of 2,001- 3,000 cubic centimeters), up to 4,000 cubic centimeters – 1,900 manats (plus four manats per each cubic centimeter with an engine capacity of up to 3,001-4,000 cubic centimeters), up to 5,000 cubic centimeters – 5,900 manats (plus eight manats per cubic centimeter with an engine capacity of 4,000-5,000 cubic centimeters), 5,000 cubic centimeters – 13,900 manats (plus ten manat per each cubic centimeter with an engine capacity exceeding 4,000 cubic centimeters).

The share of excise tax in the total cost of the yachts for leisure and sports and other vessels with the same purpos has been set at three manats per each cubic centimeter of engine.

Earlier, the share of excise tax in the total cost of cars and yachts for leisure and sport was as follows:

With engine capacity up to 2,000 cubic centimeters

Per each cubic centimeter of engine — 0,15 manat

With engine capacity up to 3,000 cubic centimeters

300 manats + one manat per each cubic centimeter of an engine up to 2,001-3,000 cubic centimeters

With engine capacity up to 4,000 cubic centimeters

1300 manats + two manats per each cubic centimeter of an engine up to 3,001-4,000 cubic centimeters

With engine capacity over 4,000 cubic centimeters

3,300 AZN + four manats per each cubic centimeter of an engine exceeding 4,000 cubic centimeters

Yachts for leisure and sports and other vessels envisaged for this purpose

One manat per each cubic centimeter of engine

The Euro-4 environmental standard has been applied in Azerbaijan since April 1, 2014 for the cars imported and manufactured in the country. The move is aimed to reduce emissions of harmful substances of cars into atmosphere and improve the environmental situation in the country, according to the decision of the Azerbaijani Cabinet of Ministers.

The decision on shifting to the Euro-4 environmental standard, bypassing the Euro-3 standard comes after an increase in the number of imported cars. It will negatively impact the environment and public health.

The import of vehicles into the country has declined after the Euro-4 standard application. Azerbaijan imported 56,804 vehicles in January-November 2014 compared to 93,686 vehicles in the same period of last year.

SOURCE: AZER NEWS