Azerbaijan abolishes road tax for transit rail freight from January 1

As of January 1, the road tax for transit rail freight transportation in Azerbaijan has been abolished, as stipulated in the relevant amendment to the Tax Code.

The amendment exempts foreign freight vehicles, trailers, and semi-trailers transporting goods to a specific railway station in Azerbaijan through the nearest customs checkpoint from road tax for two years, Caliber.Az reports via local media.

Additionally, goods transported by rail are exempt from road tax when transferred at the designated final railway station, as determined by the relevant executive authority, to foreign freight vehicles, trailers, and semi-trailers for transport to another country through the nearest customs checkpoint.

To recap, these incentives will lead to the development of international transportation corridors passing through the country and ensure competitiveness with alternative corridors. These tax incentives will have a positive impact on the development of trade relations, stimulating the integration of foreign motor vehicles and railway transport, which will help ensure faster and more efficient transportation in the transport sector, as well as strengthen international trade and transport links.

To note, according to the Tax Code, foreign vehicles entering, passing through, and leaving the territory of Azerbaijan are subject to road tax at established rates depending on the number of axles, duration of stay in the country, and total weight with cargo.

By Aghakazim Guliyev