Road Fees to be Established for Registered and Unregistered Interstate Freight Carriers

Equal conditions for both registered and unregistered interstate freight carriers, including individual entrepreneurs and companies, are set to be established in the Republic of Armenia regarding road fees. This was announced by the Deputy Minister of Territorial Administration and Infrastructure, Armen Simonian, at the press room of Armenpress.

“In November 2017, the Republic of Armenia signed a Comprehensive and Enhanced Partnership Agreement with Europe, one of the points of which concerns road taxes and fees. Within this framework, we had certain options on what to establish – a road fee or a tax. After various discussions, it was decided to establish a road fee,” Simonian noted, adding that this option would be fairer for all market participants.

For companies operating in the Republic of Armenia that have conducted freight transport, a road tax was previously established. However, with the new tax code as of January 1, 2018, it was abolished. “According to European regulatory requirements, taxes and fees should not have a discriminatory nature and should not depend on whether freight carriers are registered or unregistered,” the Deputy Minister stated.

Regarding the criteria for the fee, which will amount to up to 50 drams per kilometer, Simonian mentioned that the legislation will not apply to all vehicles. “Vehicles that will transport loads of 12 tons or more will pay up to 50 drams in road fees per kilometer. This project pertains to cargo carriers. The classification issue is currently being discussed also based on axles, as there are trucks that operate with 3, 4, or 6 axles. The more axles there are, the greater the weight on the road, and therefore the greater the damage. By also studying international experience, we have concluded that the optimal maximum price should be set at 50 drams,” Simonian emphasized.