The new tax mechanism for taxi services has been clarified, Nijat Imanov, Head of the Main Department of Tax Policy at the State Tax Service, said during discussions on the proposed amendments to the Tax Code at today's meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, APA reports.
Nijat Imanov noted that the amendments aimed at strengthening tax control envisage changes to tax administration in the taxi services sector.
He stated that taxi operations are currently carried out through the acquisition of a special identification badge, with a fixed tax of AZN 18 paid regardless of whether earnings are high or low.
"The current proposal envisages the introduction of a more balanced, income-based taxation model. Thus, by having operators withhold tax at source, the administrative burden on individuals providing taxi services will be eliminated.
At the same time, a tax of 1% will be deducted from their turnover, namely the amount payable to them. Therefore, taxi drivers with lower turnover will pay less tax, while those with higher turnover will pay more under the 1% principle.
Overall, according to our analysis, the average amount appears to be around AZN 18–20. There are also a number of taxpayers whose earnings are lower than this amount. We believe that taxpayers with lower earnings will benefit from this change," he said.
Note that under the draft amendments, it is proposed to calculate simplified tax at a rate of 1% on income paid by operators to taxpayers providing passenger transportation services by taxi through taxi booking operators within the country.
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