Baku: Azerbaijan has announced a significant policy shift by suspending allocations from excise rates to the compulsory health insurance fund, effective from January 1 next year. This decision was reported by APA-Economics and discussed during the Economic Policy, Industry, and Entrepreneurship Committee meeting of the Milli Majlis, Azerbaijan’s Parliament.

According to Azeri-Press News Agency, the proposed amendments to the Tax Code and the ‘Law on Compulsory Health Insurance’ suggest abolishing specific articles that currently allocate portions of excise rates to the health insurance fund. Specifically, it is suggested to remove Articles 191.5 from the Tax Code and 15-10.1.6 and 15-10.1.7 from the ‘Law on Compulsory Health Insurance.’

Article 191.5 of the Tax Code currently mandates that a portion of excise rates on excisable goods, as determined by the ‘Law on Compulsory Health Insurance,’ be paid to the compulsory health insurance fund. Under Article 15-10.1.6 of the ‘Law on Medical Insurance,’ a charge of 0.02 manat per liter is applied to gasoline, diesel fuel, and liquefied gas produced or imported in Azerbaijan. Meanwhile, Article 15-10.1.7 applies a 0.2 manat excise rate per liter on vodka and fortified beverages, 0.05 manat per liter on beer, 1.5 manat per 1000 cigarillos and cigarettes, and 0.1 manat per liter on energy drinks, directing these funds to the Compulsory Insurance Fund.