According to a report by the Kazinform website on November 4, Azerbaijan plans to amend the tax law and increase the Excise coefficient for imported passenger cars that are more than 7 years old starting from January 1, 2026: increase the consumption tax (Excise) coefficient from the current 1.2 to 1.5 for gasoline vehicles, and increase the increase from 1.5 to 2.0 for diesel vehicles. The policy goal is to update the fleet, reduce the import of elderly and high-emission models, and promote the entry of more environmentally friendly models. lt;br>
Under the current system, consumption tax is levied step by step based on displacement; a higher benchmark tax is set for vehicles over 3 years old and with a displacement of more than 3000 milliliters. According to the tax law: ≤2000 ml is levied at 0.30 manats per milliliter;2001- 3,000 ml is 600 manats plus 5 manats per excess of 1 ml; 3,001 -5000 ml is 18,600 manats plus 35 manats per excess of 1 ml; more than 5000 ml is 53,600 manats plus 70 manats per excess of 1 ml. For vehicles with "age gt;3 years and gt;3000 ml", a higher benchmark applies: 3001- 4,000 ml is 5,600 manats plus 15 manats per ml, 4001-5000 ml is 20,600 manats plus 40 manats per ml, and more than 5000 ml is 60,600 manats plus 80 manats per ml. In other words, the older the car and the larger the displacement, the higher the comprehensive tax burden; this time, the "gt;7-year" coefficient will be increased again, and the increase will be the largest for old diesel vehicles. lt;br>
The intuitive impact of this increase can be based on two common displacements (for illustration only, excluding tariffs, value-added tax and other fees): for an 8-year-old 1.6L gasoline vehicle, the benchmark tax is 0.30×1600=480 manats, which is 576 manats based on the old coefficient of 1.2, and 720 manats based on the new coefficient of 1.5, and the tax burden increases by 25%. For an 8-year-old 2.2L diesel vehicle, the benchmark tax is 600+5×200=1600 manats, the old coefficient of 1.5 is 2400 manats, and the new coefficient of 2.0 is 3200 manats. The tax burden increases by about 33%. For older models exceeding 3.0L, the marginal cost increase is more obvious because the benchmark is significantly higher and the "gt;7-year" coefficient is added. In addition, according to an earlier recommendation by the Azerbaijan Automobile Dealers Association (AADA), regulators should also consider restricting natural persons from importing "second vehicles" from abroad. If relevant discussions advance, it will further reduce the space for multiple personal imports. lt;br>
For China's automobile export practitioners, this means that the selection and pace must be switched in advance. The age of vehicles over seven years will significantly increase the landing tax burden, especially for old diesel vehicles. It is recommended to reduce the introduction of large-displacement and high-power diesel configurations for older people and shift to the main combination of "≤2.0L gasoline/hybrid, recent models, and mileage transparency"; if you organize used car sources, give priority to 3-5 years old and prepare complete vehicle condition and compliance materials. "Elderly vehicles" shipped in the fourth quarter of 2025 need to be carefully controlled on arrival and customs clearance times. A new factor will be triggered when arriving at the port across the New Year. The responsibility and delivery window for tax burden changes should be clarified in the contract. New cars and new energy products do not directly enjoy concessions in this document, but the policy guidance is clear to benefit "newer and cleaner" models, and follow-up supporting facilities and possible environmental incentives should be tracked simultaneously. lt;br>
Brief comment: Azerbaijan is not "increasing taxes across the board", but uses "displacement ladder + vehicle age coefficient" to accurately squeeze the import space of senior citizens and high-displacement. lt;br>