YEREVAN, MAY 1, NOYAN TAPAN. In accordance with the requirements of joining the World Trade Organization (WTO), starting from January 1, 2009, it is envisaged to collect value added tax (VAT) from farms in Armenia. However, taking into account the low profitability of the sector, productivity of lands in the country and other peculiarities, the Armenian government has conducted negotiations with the WTO to ease somewhat this obligation. The RA minister of agriculture Davit Lokian said in the National Assembly on April 30 that an agreement has been reached that small farms will continue being exempt from VAN after the indicated date. In his words, no VAT will be collected from Armenian farms and 3 thousand enterprises producing agricultural products. VAT will be levied on 1,000 entities but the sums levied will be given back to these farms in the form of subsidies and other services. D. Lokian announced that this order will be in force within the next 5 years.

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