Cabinet of Ministers of Azerbaijan gave clarification in connection with the Resolutions No. 87 and 88.
Reported on the office of the Cabinet of Ministers, on February 23, 2021, a law was adopted about amending the Tax Code of Azerbaijan. Changes provided for the extension of VAT exemption terms (Article 164), exemption from excise rate (article 188) and a change in the list of excisive goods and excise rates.
Advanced in Article 164 of the Code, on the basis of a confirming document issued by the relevant authority, from January 1, 2021, from January 1, 2021, the import of machine tools, equipment and devices for the production and processing of jewelry products from gold and silver, as well as Sale of gold and silver in the form of ingots, coins and granules.
Amendment in Article 188 of the Tax Code From January 1, 2021, for a period of three years, platinum, gold, jewelry and other products from them, processed, prepare, framed and tempered diamonds were released from the excise duty.
Amendments to Article 190 of the Tax Code have expanded a list of excisable goods, as well as rates of excise taxes on various tobacco products, except production. Based on these changes, it was necessary to make adjustments to the decree of the Cabinet of Ministers.
These adjustments were reflected in the decisions of the Cabinet of Ministers “On Amendments to Decisions” on the approval of excise rates on goods imported into the territory of the Republic of Azerbaijan and the excise tax “Cabinet No. 20 of January 19, 2001” and “On Amendments to” Commodity nomenclature of foreign economic activity of the Republic of Azerbaijan, imports of imported customs duties and rates of export customs duties “approved by Decree of the Cabinet of Ministers of Azerbaijan No. 500 dated November 17, 2017”.
As you know, excise taxes due to its economic nature, on the one hand, are applied to hold in the state budget parts of additional profits from the production of highly productive products, on the other – to limit the consumption of socially harmful goods. Thus, increasing the excise tax on tobacco products, which are the main risk factor in noncommunicable diseases that reduce the average life expectancy and reduced quality of life, was considered appropriate.