The sale of buses manufactured in Azerbaijan, as well as the import of spare parts for buses for the purpose of production on the basis of a supporting document, will be exempt from value added tax (VAT).
As Day.Az reported on Monday, this measure was included in the proposed amendment to the Tax Code of Azerbaijan, which was discussed at a meeting of the country’s Milli Majlis (parliament).
According to the project, the sale of buses manufactured in the Republic of Azerbaijan, as well as the import of spare parts for buses intended for production needs by legal entities on the basis of a supporting document, will be exempt from VAT from January 1, 2025 for a period of 8 years.
It was noted that one of the goals of sustainable development of Azerbaijan is to create a safer and more environmentally friendly transport system and reduce emissions into the atmosphere. In this regard, the country is working to renew its bus fleet.
In addition, Order No. 4265 of the President of the Republic of Azerbaijan dated January 13, 2024 approved the distribution of funds from the 2024 state budget for the purchase of buses with electric motors for BakuBus LLC. For these purposes, it is planned to allocate 90 million manat, with instructions to purchase buses from a supplier engaged in production in the country. In the future, it is planned to continue allocating funds for this purpose.
Negotiations are also underway in Azerbaijan to conclude agreements for the local production of electric buses to renew the bus fleet through domestic production.
After discussions, the bill was put to a vote and adopted in the third reading.