It is proposed deferring term of VAT collection for up to 3
years in case of some goods' import
23-02-2009 23:40:00 | Armenia | Economy
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.