Thursday, 25 February 2016
Government to abolish transitional provisions regarding VAT taxation of cars imported from EAEC countries
A regular Cabinet meeting was held today, chaired by Prime Minister Hovik Abrahamyan.
Before moving on to discuss the issues on the agenda, the Prime Minister said: "During this month a subject of public discussion was the issue of VAT taxation of vehicles imported by our citizens from the countries of the Eurasian Economic Union. The question for the Eurasian Economic Union is not new. Kazakhstan has also resorted to such a transitional limitation. The question is not new as in terms of inclusion in the agenda of our economic policy. Last year the Government of Armenia held active discussions with our colleagues from the Eurasian Economic Union towards the abolition of major obstacles trade, such as the imperfect VAT arrangements. After discussing the issue with the President of the Republic of Armenia, we have decided to revise the legislation governing this area. I propose to include in the agenda an additional issue, namely the abolition of the transitional provisions of the VAT taxation of cars imported by our citizens from the countries of the Eurasian Economic Union. "
Accordingly, the Government made an addition to one of its previous decisions and approved the draft RA Law “On introducing amendments to the law On Value Added Tax, which was considered urgent.
By a resolution of the Government of the Republic of Armenia, VKS Armenia OJSC was allowed, within the area of a priority investment program, to take advantage of benefits and exempt from customs duty manufacturing equipment, its component parts and components and raw materials. Provision of benefits this resolution will be a strong incentive for new investment programs, as well as creating jobs, attracting investment, the development of local production and export.
According to the Prime Minister, the adopted a resolution will contribute to the development of light industry, as well as the creation of new jobs.
The government adopted a decree “On the repayment of obligations in the associations of water users, the adoption of which is due to the need to strengthen the quota of state support for water users associations in 2016 to pay off their current debts.
The government adopted a decree on the allocation of funds to the State Committee of Water Resources of the Ministry of Agriculture to ensure the prompt start of the construction the Vedi reservoir and ensure their continuity. According to the justification, under the program of construction of the Vedi reservoir and irrigation system are working on the design and preparation of tender documents. As a result of the construction of the reservoir is expected to provide higher cost efficiency.
Attaching great importance to the decree, the Prime Minister said that the government has announced the construction of reservoirs to be a priority, and steps are being taken for the speedy implementation of the program.
The Government has agreed to a proposal to conclude a number of agreements, including the Agreement between the Governments of the Republic of Armenia and the United Arab Emirates on promotion and reciprocal protection of investments, as well as the Agreement between the governments of Armenia and France on mutual provision of the right to work for family members of diplomatic missions, consular offices and permanent missions to international organizations, and others.
