Deputy head of state revenue committee predicts drop in revenue collection rate
30.05.2016,
19:11
Deputy chairman of Armenia’s State Revenue Committee Armen Alaverdyan reiterated today his opposition to a law that abolished earlier this year a 20 percent tax levied from cars imported to Armenia from Russia and other members of the Eurasian Economic Union (EEU) by individuals for personal use, saying the move will have a dramatic impact on tax collection rates in the next two years.
YEREVAN, May 30. / ARKA /. Deputy chairman of Armenia’s State Revenue Committee Armen Alaverdyan reiterated today his opposition to a law that abolished earlier this year a 20 percent tax levied from cars imported to Armenia from Russia and other members of the Eurasian Economic Union (EEU) by individuals for personal use, saying the move will have a dramatic impact on tax collection rates in the next two years.
Speaking at parliament discussion on the execution of 2015 budget, Alaverdyan said the annual customs revenues from import of cars fell to 20 billion drams in 2015 from previous 35-45 billion drams. He said after the bill was approved by the parliament, imports of cars from EU and USA dwindled significantly as importers began bringing cars from Russia and other EEU member countries.
According to official data, import of cars to Armenia slashed by 38.3% in 2015 to 27,300 from 44.300 in 2014. The customs value of the imported cars dropped from $279.1 million to $133.4 million.
The bulk of cars -93%- are imported to Armenia from Germany, Japan, Russia and the US. The import of vehicles from Germany, Japan and the United States declined last year, while import of cars from the Russian Federation grew.
For example, last year, 11,700 cars were imported from Germany worth $49.1 million, down from 23,100 imported a year earlier worth $106.2 million.
Some 6,400 cars worth $35.4 million were imported from Japan, down from 13,300 imported in 2014 which were worth $95.1 million.
Some 1, 2000 cars were brought to Armenia last year from the United States, worth $10.6 million, down from 2,200 cars brought in 2014 worth $23.2 million.
Imports of cars from Russia in 2015 increased from 1,700 (worth $8.2 million) to 6,100 (worth $ 20.5 million.).
According to estimates, in 2015, citizens of Armenia paid more than $10 million VAT for imports of cars from the Russia-led union. About 90% of imported cars cost less than $10,000 and about 60% less than $5, 000.-0-. ($1 – 477.82 drams). -0-
Speaking at parliament discussion on the execution of 2015 budget, Alaverdyan said the annual customs revenues from import of cars fell to 20 billion drams in 2015 from previous 35-45 billion drams. He said after the bill was approved by the parliament, imports of cars from EU and USA dwindled significantly as importers began bringing cars from Russia and other EEU member countries.
According to official data, import of cars to Armenia slashed by 38.3% in 2015 to 27,300 from 44.300 in 2014. The customs value of the imported cars dropped from $279.1 million to $133.4 million.
The bulk of cars -93%- are imported to Armenia from Germany, Japan, Russia and the US. The import of vehicles from Germany, Japan and the United States declined last year, while import of cars from the Russian Federation grew.
For example, last year, 11,700 cars were imported from Germany worth $49.1 million, down from 23,100 imported a year earlier worth $106.2 million.
Some 6,400 cars worth $35.4 million were imported from Japan, down from 13,300 imported in 2014 which were worth $95.1 million.
Some 1, 2000 cars were brought to Armenia last year from the United States, worth $10.6 million, down from 2,200 cars brought in 2014 worth $23.2 million.
Imports of cars from Russia in 2015 increased from 1,700 (worth $8.2 million) to 6,100 (worth $ 20.5 million.).
According to estimates, in 2015, citizens of Armenia paid more than $10 million VAT for imports of cars from the Russia-led union. About 90% of imported cars cost less than $10,000 and about 60% less than $5, 000.-0-. ($1 – 477.82 drams). -0-
