People are Facing Reality: Torosyan on Electric Vehicle Customs Duties

Yesterday, I raised a question regarding the real citizens of Armenia about the import quota for electric vehicles for the next year, and I want to continue this discussion because it seems some things were left out. This was stated today, November 13, by Arsen Torosyan, a member of the Civil Contract faction, during his speech in the National Assembly discussing the draft state budget for 2025, referring to a proposal that the distribution of the electric vehicle quota for the following year will occur using a different mechanism.

“You know that last year we received a quota from the EAEU to import vehicles without customs duties for 2 years, 8000 vehicles each year. Fortunately, for the first time this year, that quota has been filled. Why unfortunately? Because last year that quota was not filled; people were not bringing in vehicles, they did not believe that this technological advancement had a place in Armenia. As soon as the quota was filled, a question arose about how the other importers would proceed; do they want to pay the customs duty or not? Some citizens want to wait and pay the customs duty next year,” he said.

It should be noted that if the new decision is adopted, vehicles manufactured after December 31, 2022, will be exempt from VAT, which puts citizens who are already in the process of importing electric vehicles at a disadvantage. Torosyan read letters from two citizens who purchased their electric vehicles a few days ago, but due to the implementation of the new regulation, they find themselves affected. One of the citizens, for example, who bought a $50,000 vehicle, has faced an additional burden of $8,000 due to the rule change. The MP sees several issues regarding this matter.

“First, we are not providing predictability to our citizens. Last year, when we were discussing the VAT exemption, I proposed, which was not accepted by the Economic Committee of the National Assembly, to apply the VAT exemption for 5-year-old vehicles. But as a result of discussions, it was decided that we would not do such a thing. Now we are changing this rule midway, especially concerning the vehicles that have already been acquired,” he noted, reminding that the purchased vehicle arrives in Armenia in 3-4 months, and if the roads are congested, it may take longer, leaving citizens faced with reality.

“Secondly, why a two-year period? If there is a specific justification for the two-year period, let us discuss that as well, because particularly for newly manufactured and vehicles produced in recent years, the warranty on batteries is approximately 8 years. And thirdly, it seems we are imposing an environmental tax on this from this year, meaning are we putting a double filter on everything?” the MP remarked and requested that representatives of the Government take the aforementioned circumstances into account when making decisions.

The State Revenue Committee of Armenia had previously informed that currently, a draft regarding the allocation of a 0 percent import customs duty rate for electric-powered vehicles categorized under the code 8703 80 000 2 is under discussion, which, in essence, will apply to newly manufactured electric-powered vehicles released after December 31, 2022.