Baku: Starting next year, a new excise tax rate will be applied to passenger cars imported to Azerbaijan with a production date of more than seven years, APA reports. This change is part of amendments to the Tax Code approved by President Ilham Aliyev.

According to Azeri-Press News Agency, the current excise rate for passenger cars in Azerbaijan is based on engine volume, with specific rates for different engine capacities. The existing structure includes rates for engines up to 2000 cubic centimeters at 0.30 manats per cubic centimeter, up to 3000 cubic centimeters at 600 manats plus 5 manats per cubic centimeter from 2001 to 3000 cc, and so forth, with different calculations for engines over 5000 cubic centimeters.

For cars with engines over 3000 cc and older than three years, the rates are structured differently, with varying amounts for capacities up to 4000 cc, 5000 cc, and above. Currently, imported cars older than seven years have their excise amounts multiplied by a coefficient of 1.2 for petrol engines and 1.5 for diesel engines.

The draft amendment specifies that from January 1, 2026, the excise rates for imported passenger cars older than seven years will be recalculated using higher coefficients: 1.5 for petrol engines and 2 for diesel engines. This adjustment reflects a significant change in the tax policy for older vehicles imported into the country.