Azerbaijan plans to introduce a new tax model for taxi drivers next year, with tax payments proportionate to income.
Nijat Imanov, head of a department at the State Tax Service under the Ministry of Economy, said this at a meeting of the Milli Majlis (National Assembly) Committee on Economic Policy, Industry and Entrepreneurship held today, Operative Information Center-OMM reports.
He said the tax administration system for taxi services is set to be restructured:
“As you know, tax is currently paid through the purchase of a permit, and a fixed tax of 18 manat is charged regardless of the driver’s income. The new proposal involves introducing a fairer, income-based tax model. Under this model, a mechanism for withholding tax at source through operators will remove the administrative burden on people working in the taxi business. At the same time, tax payable to the state budget on their income will be calculated at a rate of 1%.”
Imanov said that under this principle, taxi drivers with lower turnover would pay less tax, while those with higher turnover would pay more, at the 1% rate. “According to overall calculations, the average tax amount will remain around 18 manat. However, in some cases, tax payments will be below that figure. We believe this reform will ease the tax burden on taxi drivers earning less.”
