Parliament cancels VAT on imports of raw materials that are not produced in Armenia

YEREVAN, April 13. /ARKA/. By a vote of 81 and 6 abstentions the Armenian parliament approved today in the second and final reading 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.

According to the amendments, import of those raw materials, which are not produced in Armenia will be exempted from value added tax (VAT) paid on the border.

Deputy Minister of Economy Armen Arzumanyan said that currently a large number of enterprises import raw materials, which are not available in Armenia.

"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, we plan to gradually shift taxation on imported raw materials and equipment from the border to the domestic economy," he said in parliament.

He said the amendments call for gradual exemption of certain types of goods from VAT. According to him, about $11 million worth of such goods were imported in 2021, but their imports are expected to increase after the approval of the amendments.

Minister of Economy Vahan Kerobyan said that the goods to be exempted from VAT include 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 meat. -0-