Tax official: Mechanisms for carbon tax refunds should be developed in Azerbaijan

The Azerbaijani government continues discussions with relevant organizations on various scenarios regarding carbon pricing, Deputy Chairman of the State Tax Service under the Azerbaijani Ministry of Economy Samira Musayeva said at the Sustainable Development Goals Dialogue on "Voices of the Future: Coordinating Climate Action and Efforts Towards Global Goals" held in Baku, Report informs.

According to Musayeva, mechanisms for returning collected carbon taxes to reduce the impact of carbon taxes on both households and small and medium-sized business entities should be considered when developing a carbon pricing policy.

"The main purpose of carbon pricing is not to generate additional revenue but to encourage high-emission sectors to invest in lower-emission and energy-efficient sectors by imposing taxes on these areas to achieve climate targets. It is important to ensure a fair transition by returning these funds to socially vulnerable groups and micro-entrepreneurs who suffer from price increases," Musayeva noted.