Azerbaijan plans to change the way taxi drivers are taxed in 2027, replacing a fixed 18-manat payment with a levy equal to 1% of income.
Nijat Imanov, a senior official with the State Tax Service, announced the proposal at a meeting of parliament’s Economic Policy, Industry and Entrepreneurship Committee, Vesti Baku reported.
Taxi drivers currently pay a fixed tax when obtaining a special operating badge, regardless of how much they earn. The proposed system would make the payment proportional to income.
Tax authorities expect the average payment to remain close to the current level of 18 manats, about $10.60, despite the change in how it is calculated.
What the Change Could Mean for Drivers
At a 1% rate, the monthly tax would vary with the income used for the calculation:
| Monthly Income | Tax at 1% |
|---|---|
| 1,000 manats | 10 manats |
| 1,500 manats | 15 manats |
| 1,800 manats | 18 manats |
| 2,500 manats | 25 manats |
| 3,000 manats | 30 manats |
Under those examples, drivers earning less than 1,800 manats a month would pay less than the current fixed amount, while those earning more would pay a higher tax.
The proposal is expected to take effect in 2027, subject to the adoption of the necessary legislative changes.