Validity of state duty on cement imports may be extended in Armenia
25.03.2020,
12:44
On Wednesday, the National Assembly of Armenia passed at the first reading amendments to the law on state duty. The bill proposes to extend until December 31, 2020 the validity of the state duty set on cement imports.
YEREVAN, March 25. /ARKA/. On Wednesday, the National Assembly of Armenia passed at the first reading amendments to the law on state duty. The bill proposes to extend until December 31, 2020 the validity of the state duty set on cement imports.
On June 3, 2019, the Armenian parliament made a decision in accordance to which, the customs duty on cement imports from Iran and other countries to Armenia was set at AMD 14,000 per ton. The decision’s validity expires on April 1, 2020.
"Over a period between July and December, the volumes of cement imported from Iran have shrunk, that is, 19.2 tons of cement were imported in one month of 2018, while from July to December 16.8 tons were imported monthly," Armenia Deputy Economy Minister Avak Avanesyan said yesterday as he presented the bill to the lawmakers. In his words, a certain decline is seen in the production of Armenian cement. "At the moment, we have two large companies, one of which recorded growth," he said.
Avanesyan said that the extension of protective measures is necessary, because, despite the decline in the Iranian economy and the depreciation of the Iranian national currency, output volumes are retained, which leads to a supply glut in the market. And this is driving prices down.
During the discussion, Artak Manukyan, an MP from My Step faction, said that this problem is a little wider in nature than it seems, since Iran pursues a protectionist policy and spurs its industry with various subsidies, including subsidies for energy carriers.
“If we constantly respond to changes in the situation by changing the law, then this will be an endless process, and we will forever race against the changing things. We must generate a strategic solution,” he said.
In particular, Manukyan proposed the creation of a fund to which funds generated as a result of the state duty will be allocated. Further, in his opinion, these funds should be directed to events that will reduce the cost of production in Armenia.
In turn, his fellow partisan, Babken Tunyan said that the extension of the terms of the duty is just necessary so that the government has the opportunity to carefully consider and work out alternative ways to solve this problem. ($ 1 – AMD 495.43). -0---
On June 3, 2019, the Armenian parliament made a decision in accordance to which, the customs duty on cement imports from Iran and other countries to Armenia was set at AMD 14,000 per ton. The decision’s validity expires on April 1, 2020.
"Over a period between July and December, the volumes of cement imported from Iran have shrunk, that is, 19.2 tons of cement were imported in one month of 2018, while from July to December 16.8 tons were imported monthly," Armenia Deputy Economy Minister Avak Avanesyan said yesterday as he presented the bill to the lawmakers. In his words, a certain decline is seen in the production of Armenian cement. "At the moment, we have two large companies, one of which recorded growth," he said.
Avanesyan said that the extension of protective measures is necessary, because, despite the decline in the Iranian economy and the depreciation of the Iranian national currency, output volumes are retained, which leads to a supply glut in the market. And this is driving prices down.
"This is not a long-term phenomenon, but according to various estimates, as a result of the loss of this sphere, it will take ten years to restore output volumes," Avanesyan said. He also noted that, despite the decrease in cement imports, clinker imports increased.
During the discussion, Artak Manukyan, an MP from My Step faction, said that this problem is a little wider in nature than it seems, since Iran pursues a protectionist policy and spurs its industry with various subsidies, including subsidies for energy carriers.
“If we constantly respond to changes in the situation by changing the law, then this will be an endless process, and we will forever race against the changing things. We must generate a strategic solution,” he said.
In particular, Manukyan proposed the creation of a fund to which funds generated as a result of the state duty will be allocated. Further, in his opinion, these funds should be directed to events that will reduce the cost of production in Armenia.
In turn, his fellow partisan, Babken Tunyan said that the extension of the terms of the duty is just necessary so that the government has the opportunity to carefully consider and work out alternative ways to solve this problem. ($ 1 – AMD 495.43). -0---
