15:19 - 31.10.2024

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October 31, Fineko/abc.az. Carbon taxes are used for both mitigation and adaptation, as well as to achieve the country's goals to combat climate change. As a developing country, we can say that although we don't have explicit taxes, we do have hidden taxes on carbon emissions. Fuel taxes, mining taxes and road taxes applied to fuel actually show that there are hidden taxes on carbon emissions in Azerbaijan.

ABC.AZ reports that State Tax Service’s deputy chairman Samira Musayeva said this at the 5th Dialogue on Sustainable Development Goals on the topic "Voices of the Future: Coordination of climate action and efforts aimed at global goals" in Baku.

She added that 42% are covered in one form or another by hidden taxes on carbon emissions.

According to Musayeva, when developing a carbon pricing policy, it is necessary to provide mechanisms for the refund of taxes collected to reduce their impact on households and small businesses.

"The goal of carbon pricing is not to generate additional income, but an incentive for high-emission industries to switch to more eco-friendly and energy-efficient technologies. It is important to ensure fair transition through refunds to vulnerable groups and small businesses experiencing the effects of rising prices," she said.