As part of preparations for the 2026 state budget, the Azerbaijani government has proposed extending tax incentives for the import and sale of electric vehicles (EVs) to further stimulate the country’s green transport market.
According to the draft law “On the State Budget of the Republic of Azerbaijan for 2026”, both import and domestic sales of electric vehicles will remain exempt from value-added tax (VAT) for another year.
The measure is part of Azerbaijan’s broader environmental and economic modernization strategy, aimed at reducing carbon emissions, cutting dependence on fossil fuels, and supporting investment in sustainable mobility infrastructure.
Economists note that the continuation of these incentives could accelerate EV adoption, particularly as charging infrastructure expands and vehicle prices gradually decrease.
If approved by parliament, the tax exemption will remain in force throughout 2026.
