Armenia and Ukraine move closer to settling their excise tax-sparked dispute: FM
11.02.2011,
21:04
Armenia and Ukraine have moved closer to settling their excise tax-sparked dispute, Armenian foreign minister Eduard Nalbandian said today.
YEREVAN, February 11, /ARKA/. Armenia and Ukraine have moved closer to settling their excise tax-sparked dispute, Armenian foreign minister Eduard Nalbandian said today after talks with his visiting Ukrainian opposite number Konstantin Gritsenko. He said both sides were having active contacts on this issue, adding also that a decision was found to satisfy both.
According to Gritsenko, the dispute is being resolved within legal frameworks via instruments stipulated by domestic legislation and Ukraine’s international commitments.
Last year Ukraine accused Armenia of creating unfavorable regime for import of Ukrainian cigarettes and alcoholic drinks in violation of WTO rules by setting a 4,750 Drams excise tax for 1000 pieces of domestically produced cigarettes and 6,500 Drams for imported cigarettes.
Later the sides said they had settled the dispute after the the Armenian government pushed through the parliament a bill setting a new regime for taxation of imported fuel, tobacco and alcohol.
Importers of these products paid only fixed taxes pegged to the physical volume of their deliveries. By contrast, local tobacco and alcohol manufacturers were subject to regular taxation that covers all businesses operations in Armenia. That included payment of value-added and excise taxes, which appeared to give them some competitive edge over their importing competitors.
Under the approved amendments, the same taxes are levied from petrol and vodka starting from January 1, 2011. Cigarette imports will fall under regular taxation from January 2014. -0-
According to Gritsenko, the dispute is being resolved within legal frameworks via instruments stipulated by domestic legislation and Ukraine’s international commitments.
Last year Ukraine accused Armenia of creating unfavorable regime for import of Ukrainian cigarettes and alcoholic drinks in violation of WTO rules by setting a 4,750 Drams excise tax for 1000 pieces of domestically produced cigarettes and 6,500 Drams for imported cigarettes.
Later the sides said they had settled the dispute after the the Armenian government pushed through the parliament a bill setting a new regime for taxation of imported fuel, tobacco and alcohol.
Importers of these products paid only fixed taxes pegged to the physical volume of their deliveries. By contrast, local tobacco and alcohol manufacturers were subject to regular taxation that covers all businesses operations in Armenia. That included payment of value-added and excise taxes, which appeared to give them some competitive edge over their importing competitors.
Under the approved amendments, the same taxes are levied from petrol and vodka starting from January 1, 2011. Cigarette imports will fall under regular taxation from January 2014. -0-
