Azerbaijan.US
Mobile phone prices in Azerbaijan are expected to rise further after the government approved new fees and registration rules that significantly restrict consumer imports and reduce price competition in the market.
Under amendments to the Tax Code and the Law on State Duties, a 20-manat excise tax will be imposed on every mobile device imported into the country. In addition, individuals bringing in more than one phone for personal use will be required to pay a state registration fee of 100 manats per device.
Previously, registration fees varied depending on the brand and value of the phone. The new framework introduces a flat, standardized tariff, regardless of price segment, effectively raising the cost of all imported devices.
Market participants estimate that the new charges will add at least 50–100 manats to the retail price of each phone.
Competition Under Pressure
Economists and industry observers note that the changes go beyond fiscal policy and directly affect market competition. By making it more expensive for individuals to import phones independently, the rules sharply reduce the ability of consumers to offer cheaper alternatives to officially imported devices.
According to experts, this effectively protects large importers from price pressure created by small-scale consumer imports – a channel that had previously helped keep prices lower.
“The restrictions are designed to prevent individuals from bringing in phones and undercutting prices set by official distributors,” analysts say. “When that competitive pressure disappears, retail prices tend to rise.”
With fewer alternative supply channels, pricing power becomes increasingly concentrated among a limited number of official market players.
Impact on Consumers
While authorities have cited budget revenue growth and the need to standardize import rules as key objectives, critics argue that the cost burden will fall primarily on consumers. Higher fuel prices, utility tariff increases, and now more expensive electronics are combining to reduce household purchasing power.
Analysts warn that limiting competition in consumer electronics – a sector heavily dependent on imports – risks creating a less flexible market, where prices adjust upward more easily than downward.
What Comes Next
The new rules will take effect on January 1, 2026. The detailed procedures for device registration and fee collection will be approved by the relevant executive authority.
With consumer imports curtailed and competition reduced, experts expect mobile phone prices in Azerbaijan to continue rising in 2026, even in the absence of global price shocks.
