Azerbaijan May Impose Higher Import Duties on Older Cars

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A proposal to introduce higher import duties on older vehicles and new taxes on electric cars has sparked debate in Azerbaijan’s parliament.

Speaking during a meeting of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship, MP Gudrat Gasanquliyev said that while tax exemptions for electric vehicles are positive from an environmental standpoint, the policy must be balanced.

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“We have exempted electric cars from import duties and taxes. That’s good if our goal is to promote eco-friendly transport and discourage old car imports. But in that case, higher tariffs should apply to gasoline-powered and aging vehicles,” Gasanquliyev said.

The MP also called for a ban on importing vehicles older than three years, arguing that outdated models contribute to pollution and road safety risks.

He further questioned the fairness of the current system:

“If someone pays an import tax for a 1,000-manat phone, why shouldn’t a person buying a 22,000-manat electric car pay a tax? Importers of electric vehicles should not be fully exempt. We need to increase taxes on other cars to discourage imports of old models.”

Gasanquliyev added that it remains unclear which companies are currently importing electric vehicles into the country and urged for greater transparency and regulatory oversight.

The proposal comes amid broader discussions on Azerbaijan’s 2026 state budget, where lawmakers are considering new fiscal measures to promote environmental sustainability and modernize the national vehicle fleet.

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