AZE.US
Azerbaijan has expanded the list of business activities in Karabakh and East Zangezur eligible for exemptions from value-added tax and customs duties on imported equipment and raw materials.
The changes were introduced by a Cabinet of Ministers resolution dated Sept. 8, 2026, extending the benefits to seven additional types of economic activity in the territories restored to Azerbaijani control.
Seven New Eligible Sectors
The expanded list covers:
- pharmaceutical manufacturing;
- electricity generation from renewable energy sources;
- grape wine production;
- scientific research and development;
- processing and preservation of meat, poultry, fish and dairy products, as well as animal-feed production;
- livestock farming and freshwater aquaculture;
- sorting and packaging of agricultural products.
The exemption applies to machinery, technological equipment, installations, raw materials and other inputs imported for eligible operations.
How Businesses Can Apply
The preferences are available only for business activities and imported goods included in the approved list. Entrepreneurs may submit applications and supporting documents to the Economy Ministry in paper or electronic form.
The expanded incentives are intended to reduce the upfront cost of projects in agriculture, food processing, pharmaceuticals, renewable energy and research. The underlying exemption framework is published in Azerbaijan’s official legal database.
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