BAKU — July 22, 2025 — Azerbaijan has introduced amendments to regulations governing tax payments and mandatory state social insurance contributions for both passenger and cargo transportation by road. The changes also impact how “Distinctive Signs” and “Special Distinctive Signs” are issued and applied.
According to the decision, the Azerbaijan Land Transport Agency (AYNA), under the Ministry of Digital Development and Transport, will now issue the “Distinctive Sign” and “Special Distinctive Sign” to taxpayers engaged in passenger transportation, as well as the “Special Distinctive Sign” to cargo carriers.
Passenger transport operators will be required to obtain a “Distinctive Sign” reporting form from AYNA for each vehicle by the end of each calendar month, selecting a validity period of one month, quarter, half-year, or full year. Meanwhile, cargo transport operators will continue fulfilling their tax obligations as outlined in the country’s Tax Code. For individuals conducting cargo transportation without hired employees, mandatory state social insurance contributions will be paid under the Law “On Social Insurance.”
But could similar measures be extended to passenger transportation?
Transportation expert Aslan Asadov believes that the reforms introduced for the cargo sector are a step in the right direction — and should be mirrored in passenger services.
“We hope that similar incentive measures will also be implemented in the passenger transport sector,” Asadov said. “There are persistent challenges in this area, and bus services are not accessible to everyone. Targeted benefits could help reduce costs and improve the quality of service. Buses remain the most widely used mode of transport by the general public.”
Asadov also suggested that regulations surrounding the “Distinctive” and “Special Distinctive” signs require further revision.
“If bus companies were granted access to working capital, we’d see more new vehicles on the streets,” he added. “Today, a new bus costs between 200,000 and 250,000 manats, and loans for purchasing them remain difficult to access. This contributes directly to the inefficiencies in passenger transport.”
As Azerbaijan pushes forward with infrastructure reforms, experts argue that equal support for both cargo and passenger systems is essential to building a modern, reliable, and inclusive transportation network.
