AZE.US
A new shift in Azerbaijan’s car import policy has drawn criticism from economist Natig Jafarli, who argues that recent government decisions risk undermining efforts to modernize the country’s aging vehicle fleet.
According to Jafarli, roughly 60% of cars in Azerbaijan are more than 20 years old – a statistic that has long fueled calls for renewal of the national auto park.
In 2019, the government introduced tax and customs incentives for hybrid and electric vehicles. Over the following five to six years, imports of newer, more environmentally friendly cars increased, contributing to gradual modernization and improved road safety standards.
However, as of this year, those incentives have been отменены. At the same time, authorities have approved exemptions from value-added tax, excise duties and customs fees for the import of collectible and rare vehicles manufactured more than 40 years ago.
Under the official decision, such vehicles – classified as collector or vintage cars – will be fully exempt from VAT, excise and customs duties, reducing costs for importers.
Jafarli questioned the economic rationale behind the move. In his view, hybrid vehicles are often purchased by middle-income drivers, including taxi operators seeking fuel efficiency and lower operating costs. Removing incentives, he argues, could increase the purchase price of such cars by several thousand manats.
By contrast, collectible vintage cars are typically acquired by wealthy individuals and enthusiasts, he said, raising concerns about policy priorities.
The broader debate touches on environmental policy, tax strategy and income distribution. While the government has not publicly framed the change as a reversal of modernization goals, analysts note that incentives often play a decisive role in shaping consumer behavior in emerging markets.
With Azerbaijan’s vehicle fleet still largely outdated, the long-term impact of the revised import rules remains to be seen.