16:01 - 6.11.2025

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November 6, Fineko/abc.az. Azerbaijan is widening tax incentives to stimulate the production of automobiles.

ABC.AZ reports that Nijat Imanov, the head of the Main Tax Policy Department of the State Tax Service, made the relevant statement during the discussion of the draft amendments to the Tax Code by the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.

He added that there is a positive trend in domestic car production: "This makes it necessary to expand tax incentives to attract additional investments to the country. VAT exemption on the import and sale of electric vehicles will be applied to buses, while tax incentives for the import of passenger electric vehicles will be abolished. In return, the production of domestic cars, including electric and hybrid ones, is exempt from VAT."

Imanov stressed that promotion of non-cash turnover in the catering sector is aimed at increasing transparency in this segment: "In this regard, the tax rate on transactions with non-cash turnover is reduced from 8% to 6%. This will encourage entrepreneurs to conduct transactions with customers in a non-cash form. VAT payers working in the catering sector, when conducting operations through a POS-terminal, will pay 9% of the turnover to the State Budget, not 18%."