Azerbaijan.US
The cost of mobile phones imported into Azerbaijan has risen sharply following recent changes to tax and customs regulations, with the strongest impact felt in the low-price segment of the market.
According to importer Akshin Mammadov, who has worked in the sector for years, a basic keypad phone that previously carried a customs value of about 8.5 manats typically reached a retail cost of 15–16 manats. After the new rules took effect, the same device now exceeds 40 manats in cost.
Previously, import pricing was shaped mainly by customs duties and an 18% value-added tax. Since the beginning of 2026, however, an additional 20-manat excise tax per device has been introduced, with VAT applied on top of that amount, significantly increasing the overall tax burden.
Industry participants say the change disproportionately affects phones priced below 200 manats. Devices with invoice values between $5 and $20 face the steepest relative increase, in some cases pushing retail prices close to double previous levels.
Under amendments to the Tax Code effective January 1, every imported mobile device is now subject to the 20-manat excise duty. One handset brought into the country by an individual for personal use during a calendar year remains exempt.
At the same time, revisions to the state duty law impose a 100-manat registration fee on each additional device imported by an individual within the same year, regardless of market value.
The State Customs Committee did not respond to a request for comment within three days.
