AZE.US
Azerbaijan’s value-added tax exemption for wheat imports and sales, as well as the production and sale of wheat flour and bread, may expire on Jan. 1, 2027.
The State Tax Service says the exemption was established for 10 years beginning Jan. 1, 2017. The government has not announced whether it will be extended.
If the exemption lapses, costs could rise across the supply chain, from grain deliveries to retail bread sales. It is too early to say how much of that increase would reach store prices because the final price also depends on wheat costs and the expenses borne by producers and sellers.
Economist Emin Garibli said in an interview with ITV that higher costs would affect families for whom bread represents a significant share of daily purchases.
Garibli said authorities could extend the VAT exemption or adopt other measures to restrain prices. His comments were a forecast, not an announced government decision.
Azerbaijan’s dependence on grain supplies remains an important factor. Preliminary State Statistical Committee data as of Aug. 3 showed the country had harvested 1.535 million tons of wheat.
Wheat yields rose to 36.5 centners per hectare from 33.6 centners per hectare during the comparable period of 2025. The committee said at the time that harvesting was not yet complete.
The central question for consumers is whether the government will extend the tax exemption before the end of the year.
Until a decision is announced, any specific increase in bread prices — or an estimate of its size — would be premature.
AZE.US