Drivers working with taxi-hailing platforms in Azerbaijan could pay tax equal to 1% of what the operator transfers them, replacing the current flat 18-manat fee. The proposal is part of draft amendments to the Tax Code.
A proposal to change how tax is calculated for taxi drivers has been discussed in Azerbaijan’s parliament, the Milli Majlis. According to Nijat Imanov, head of the State Tax Service’s Tax Policy Main Department, who spoke at a meeting of the Milli Majlis’s Committee on Economic Policy, Industry and Entrepreneurship, drivers currently pay a flat simplified tax of 18 manats when they receive their distinguishing sign, regardless of how much they earn.
Under the new proposal, the tax would no longer be fixed: the operator would withhold 1% when paying the driver. As a result, drivers receiving less than 1,800 manats from an operator would pay less than 18 manats in tax, while those receiving more would pay more.
Official estimates suggest that if the new rule takes effect, the average tax burden per driver would range between 18 and 20 manats. Imanov said drivers who earn less would benefit from the change.
