YEREVAN, DECEMBER 27, NOYAN TAPAN. In 2007, the Armenian government will provide experimental subsidies to farmers of 11 villages in Gegharkinik and Aragatsotn marzes: 35 thousand drams (about 90 USD) will be provided for a hectare. The RA Minister of Agriculture Davit Lokian said on December 27 at the press conference to summarize this year's results that starting from 2008, this order of subsidizing will function in other marzes as well. According to D. Lokian, the draft law on state assistance to the agricultural sphere has been developed by the ministry and submitted to the government. According to the draft law, the subsidizing of agriculture by the government should have a constant character, and a policy of regulating agricultural foodstuff prices should be conducted. The minister noted that from 2009, farms will not pay VAT if their turnover does not exceed 10 million drams. Thus, the majority of farms - 85% will be exempt from VAT. D. Lokian added that even big land owners, who will pay VAT, will not have any problems: for example, a 10% tax will be collected from them instead of the current 20% tax for a 50-ha land.

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