Baku: Starting next year, the excise tax rate for passenger cars imported to Azerbaijan that are more than 7 years old will be increased, APA-Economics reports. This change is reflected in the proposed amendments to the Tax Code.

According to Azeri-Press News Agency, the excise rate for passenger cars in Azerbaijan is calculated based on engine volume. The current rates for various engine capacities are as follows: up to 2000 cubic centimeters, the rate is 0.30 manats per cubic centimeter; up to 3000 cubic centimeters, it is 600 manats plus 5 manats for each cubic centimeter from 2001 to 3000 cc; up to 5000 cubic centimeters, it is 18,600 manats plus 35 manats for each cubic centimeter from 4001 to 5000 cc; and for over 5000 cubic centimeters, it is 53,600 manats plus 70 manats for each cubic centimeter exceeding 5000 cc.

For passenger cars with an engine capacity over 3000 cc and older than 3 years, the rates are different. Up to 4000 cc, the rate is 5600 manats plus 15 manats for each cubic centimeter from 3001 to 4000 cc; up to 5000 cc, it is 20,600 manats plus 40 manats for each cubic centimeter from 4001 to 5000 cc; and for over 5000 cc, it is 60,600 manats plus 80 manats for each cubic centimeter exceeding 5000 cc.

Currently, the excise calculation for imported cars older than 7 years involves multiplying the amount by a coefficient of 1.2 for petrol engines and 1.5 for diesel engines. However, according to the draft amendment, starting from January 1, 2026, these coefficients will increase to 1.5 for petrol engines and 2 for diesel engines.