Baku: The Deputy Head of the State Tax Service in Azerbaijan, Samira Musayeva, has confirmed that the country will not introduce a carbon tax in the upcoming year. In an interview with “APA-Economics,” Musayeva emphasized that there are no anticipated changes to the Tax Code concerning the implementation of carbon pricing mechanisms, including a tax targeting greenhouse gases.

According to Azeri-Press News Agency, Musayeva explained that while there will be no carbon tax next year, the draft amendments to the Tax Code for 2025 do include provisions for additional incentives in environmental fields. These incentives aim to promote a greener transportation system and reduce atmospheric emissions. Specifically, the draft proposes tax benefits for the production of local buses, including electric models, and for projects focusing on electricity generation from renewable energy sources.

Musayeva further highlighted the complexities involved in adopting carbon pricing mechanisms. She pointed out that research and
expert consultations have shown that these tools have varied advantages and drawbacks. Moreover, there is currently no unified international approach or consensus on implementing carbon pricing strategies, reflecting the diverse challenges and considerations faced by countries worldwide.