Why Is the Government Changing the Rules for Electric Vehicle Imports?

We have a quota within the EAEU framework that we are utilizing. We decide whether to benefit from that quota or not based on our policies. We can also decide not to allocate the quota at all. This is not a positive obligation that we are fulfilling. This was stated by the Minister of Finance Vahe Hovhannisyan during the discussion of the 2025 budget draft in the National Assembly, responding to the comment from MP Arsen Torosyan from the ruling Civil Contract party, who noted that the State Revenue Committee has informed that a project is under discussion in the government, according to which the distribution of next year's electric vehicle quota will take place through a different mechanism. This means that if the decision is adopted, only vehicles issued after December 3, 2022, will be exempt from VAT.

Torosyan believes that if the project is adopted, it could have unforeseen consequences for citizens who have already purchased electric vehicles. Hovhannisyan stated that the goal of the new policy is to ensure this benefit is given to the importation of new cars. “This is logical, I think, because we do not want outdated cars to be imported into Armenia like before, and for Armenia to become a place for the disposal of those vehicles shortly after. In other words, we want to import vehicles whose service life can be as long as possible,” the minister said.

Arsen Torosyan reacted by saying that it would seem like the rules of the game are changing halfway through, especially since this will also affect cars that have already been acquired, and urged that this issue be considered when making the decision. Vahe Hovhannisyan replied that discussions regarding granting exemptions to electric vehicles are not straightforward. There are various analyses regarding the expenses incurred in producing and servicing electric vehicles compared to traditional combustion engine vehicles. “Here we have to think and determine our long-term policies. Of course, we also welcome the importation of electric vehicles and their development in Armenia, and I believe that all the benefits that exist in this direction are adequate to those policies,” he said. The minister also noted that soon a comprehensive report on the global experience regarding electric vehicles will be presented in the National Assembly, detailing existing practices, and in this context, approaches may be reviewed.