Entities Not to Pay VAT of the Raw Material Being Used, Imported in the Industry on the Border

It is proposed to phase out the levy of the Value Added Tax (VAT) on the customs border from the raw material and substances, which are not in Armenia, but are necessary for producing final goods. The draft law on Making Addenda and Amendments to the Law on Approval of List of Goods Imported by Organization and Private Entrepreneurs, That Have '0' Customs Duty Rate and are Not Subject to Excise Taxation and for which Value Added Tax Shall Not Be Calculated and Collected by Customs Authorities was debated in the first reading at the NA regular sitting on January 16.

The Deputy Minister of Economy Armen Arzumanyan underlined that in case of the proposing goods the VAT is not calculated the volumes of the import for the mentioned goods will be increased.

Considerable number of companies of the industrial branches of our country import raw material and substances that are not in Armenia, but are necessary for getting final goods in the production. Those goods are levied by the VAT while crossing the customs territory of Armenia, which demands additional financial expenditures from the industrial companies.

The member of the Standing Committee on Economic Affairs Tsovinar Vardanyan, presenting the endorsement, noted the RA Government adopted a policy of creating favourable conditions for business environment and within that framework proposed some kinds of goods, which are used mainly in the production, serving as a raw material, and are not produced in the RA, but are imported, tp postpone the levying by the VAT, i.e. the entities will not pay those payments on the border.