A 1% income tax will be introduced for taxi drivers in Azerbaijan

Azerbaijan plans to introduce a new, income-based taxation model for taxi drivers starting in 2027.

As Report informs, this was stated by Nijat Imanov, head of the main department of the State Tax Service, at a meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.

According to him, the tax is currently levied at a fixed rate — 18 manats per month regardless of the driver's income. The new model provides for withholding the tax at the source of payment through operators at a rate of 1%.

"According to general calculations, the average amount of tax will remain at around 18 manats, but in some cases the rates will be lower. We believe that as a result of this reform, the tax burden on taxi drivers with lower incomes will decrease," Imanov noted.