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Currently, a significant number of companies in the industrial branches of the republic import raw material and substances that are not available in Armenia, but are necessary to get the final product, in order to carry out production activity. The RA Deputy Minister of Economy Armen Arzumanyan said this at the sitting of the NA Standing Committee on Economic Affairs on January 11.

The Deputy Minister mentioned that when crossing the customs territory of Armenia, these goods are charged with value added tax (VAT), which requires additional financial expenses from industrial companies.

The products included in the draft are not produced in Armenia, but are necessary for industrial enterprises to create the final result. Based on the economic policy adopted by the Government to support local producers, it is designed to gradually transfer the taxation of raw material and equipment imports from the border to the domestic economy, along with the development of administrative toolsets, from the viewpoint to increase the efficiency of cash flow management of business entities. For this purpose, it is proposed to take steps to phase out the levying of value added tax at the customs border. Armen Arzumanyan underscored that if the offered products are exempted from the VAT at the border, the volume of the mentioned products’ import will increase.

According to the deputies, there is a need to clarify the list of products presented in the draft law, hence an agreement was reached to clarify it during the period from the first to the second reading.

The draft law was endorsed.