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Azerbaijan Exempts VAT on Local Bus Sales and Spare Parts to Boost Sustainable Transport

  • Sale of buses manufactured in Azerbaijan and import of spare parts for bus production will be exempt from Value Added Tax (VAT).
  • This exemption was discussed in the Azerbaijani Parliament and is included in a proposed modification to the Tax Code.
  • The VAT exemption will be effective from January 1, 2025, for eight years, applicable to legal entities with proper documentation.
  • The amendment aims to promote a sustainable, environmentally friendly transportation system and modernize the bus fleet in Azerbaijan.
  • A presidential decree allocated 90 million manat ($52.9 million) from the 2024 state budget for purchasing electric buses for BakuBus LLC.
  • The electric buses will be sourced from local suppliers manufacturing them in Azerbaijan.
  • Further funding plans for the sector are expected to be finalized soon, focusing on local production of electric buses.
  • The proposed amendment was approved in the first reading after discussions.

Source: en.trend.az

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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