Baku:The Azerbaijani government has put forward a proposal to introduce a simplified tax rate of 8% for individuals engaged in domestic freight transportation for a period of five years. This proposal aims to provide an alternative taxation option for their income.

According to Azeri-Press news agency, the proposed amendment to the Tax Code reflects the importance of domestic freight transportation as a key service sector that ensures the continuity of the economy's supply chain. Many businesses in this sector are operated by small entrepreneurs and individual carriers.

Currently, carriers face challenges in officially documenting certain expenses, which can lead to incomplete declaration of turnover and informal activities. The introduction of an alternative simplified tax is expected to simplify tax obligations, reduce administrative costs, and enhance voluntary compliance among entrepreneurs.

This initiative is also anticipated to encourage the formalization of freight transportation services, improve transparency of logistics costs, and create a level playing field in the market.