A string of amendments to the law, which designates imported goods, which are not subject to excise duties and are exempted from value added tax, is approved today in the second and final reading by the Armenian parliament by a vote of 81 and 6 abstentions.
The amendments will make import of those raw materials, which are not produced in Armenia, exempted from value added tax (VAT) paid on the border.
According to Deputy Minister of Economy Armen Arzumanyan, currently a large number of enterprises import raw materials, which are not available in Armenia.
He said in parliament that given that the economic policy of the government is aimed at supporting local producers and increasing the efficiency of cash flow management by business entities, they plan to gradually shift taxation on imported raw materials and equipment from the border to the domestic economy.
As Arzumanyan said, gradual exemption of certain types of goods from VAT is called for by the amendments. He added that the country imported about $11 million worth of such goods in 2021, but they expect imports to increase after the approval of the amendments.
According to Minister of Economy Vahan Kerobyan, domestic chicken eggs for incubation; embryos, seminal fluid, seeds; products for the testing industry, including the processing of textile materials, leather, skins, etc.; also products necessary for the production of poultry and meat are included in the list of the goods to be exempted from VAT.
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