Import of Several Goods Will Be Exempt from VAT

The Permanent Committee on Economic Issues of the National Assembly approved a draft law presented by the government, which expands the list of intermediate and capital goods whose import is exempt from value-added tax (VAT).

According to Armenpress, the draft laws on amending the law of the Republic of Armenia on "Establishing the List of Goods Imported by Organizations and Individual Entrepreneurs That Are Not Subject to Excise Tax, Which Are Exempt from Value-Added Tax" and amending the Tax Code of the Republic of Armenia were presented at the committee meeting by Deputy Minister of Economy Avag Avanesyan.

According to the Deputy Minister, this law will exempt a range of additional goods, with an average total value of 70 billion drams, from VAT obligations at the border when importing intermediate and capital goods.

The result will generate additional liquid resources for those economic operators. According to various estimates, the overall benefit to the economy from the adoption of this law could range from 700 million to 1 billion drams, Avanesyan stated.

He noted that it simultaneously simplifies regulation and creates a more equitable competitive environment. "Previously, similar privileges were granted based on government decisions. That is, if an economic operator was aware of such a tool, they could benefit from it, but if they were not informed, they could not. Now it will be automatic," the Deputy Minister said, adding that the project is a positive signal for the economy.

Thus, the import of several goods imported by organizations and individual entrepreneurs, which are not subject to excise tax, will also be exempt from value-added tax; the approved list has been supplemented with new items. For instance, one of such products is raw materials.

Some deputies expressed reservations regarding certain goods included in the list.