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The adoption of the initiative is conditioned by the necessity to extend the current legal norm for one more year on exempting the import and alienation of electric vehicles from value added tax (VAT): the RA Deputy Minister of Economy Narek Teryan said this presenting the proposed addendum to the Tax Code of the Republic of Armenia for debate in the first reading at the NA extraordinary sitting on November 21.

According to the rapporteur, currently the above-mentioned vehicles are exempted from the payment of the value added tax until January 1, 2024. “According to the draft, it is planned to extend the exemption from value added tax for another year, until January 1, 2025,” Narek Teryan underlined.

Answering the MPs' questions, the Deputy Minister noted that the Government is taking steps to promote the increase of electric vehicles and the development of relevant infrastructures.

The NA Vice President Hakob Arshakyan inquired whether steps are being taken to ensure the installation standards of charging stations, underscoring. “These infrastructures must also be developed, otherwise privileges regarding cars may also cause problems in the future.” The rapporteur mentioned that although the issue of installation of charging stations is decided by the community authority, it is also included in the complex programme elaborated by the Government.

The endorsement of the Standing Committee on Economic Affairs was presented by the Committee member Narek Ghahramanyan. According to him, the issue of exempting electric motor buses, trucks and construction equipment from import tax is also under debate.

The MPs welcomed the initiative and talked about the need to replace the official state cars with electric powered cars. The rapporteur noted that there are already a number of institutions that purchase such vehicles.