YEREVAN, FEBRUARY 23, NOYAN TAPAN. The National Assembly on February 23 discussed in first reading the government-submitted draft law envisaging amendments and additions to the RA Law on Value Added Tax. By the draft, it is proposed deferring the term of collection of VAT calculated by customs bodies for up to 3 years, if the customs value of the imported commodity or the investment package amounts to or exceeds 300 million drams (about a million dollars) - in case of import of some goods (in particular equipment and conveyers) by companies selected in the order established by the Armenian government. The main speaker, minister of economy Nerses Yeritsian said that the draft whose value makes about 5 billion drams by preliminary calculations is considered to be an anticrisis measure. It is aimed at ensuring technological transformation of Armenia, updating its economy and increasing capital investments. It is envisaged that the proposed privilege will be in effect until 2011. "I think these expenses will bring much more benefit in the medium and long term," the minister noted. Under the current law, in case of import of goods on certain codes, if the customs value is less than 70 million drams, the period of payment of VAT calculated by customs bodies is deferred for one year, if the customs value is 70 million drams or over, the payment is deferred for 2 years. The objections voiced by a number of National Assembly deputies, including the chairman of the Standing Committee on Economic Issues Vardan Aivazian, were conditioned by the necessity to rule out the possible subjective approach in the selection of companies. Some of them were in favor of establishing definite criteria, while the others proposed creating an equal field for all economic entities making investments for the development of production.

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