Agricultural equipment import in Armenia may become vat-free

YEREVAN, May 5. /ARKA/. Importers of pesticides, fertilizers and
agricultural equipment in Armenia may be exempted from paying
value-added tax, Gagik Khachatryan, chairman of the State Revenue
Committee, said Thursday after a meeting aimed at discussing the
processing industry's problems.

`At this meeting, we came up with a proposal to exempt importers of
pesticides, fertilizers and agricultural equipment from VAT in an
effort to spur development of agriculture and processing industry,
which is directly connected with the agriculture sector,' he said.

The chairman of the committee voiced concern over too low taxes in the
processing segment.

`Of course, there are some problems in this area, such as difficulties
in selling and exporting products, but nevertheless, taking into
account this, we have come to conclusion that taxes here should be
increased,' he said.

Khachatryan said that now taxes in the processing industry make up
only one percent of the total output.

`This industry's turnover grew 35% in 2010, compared with the previous
year, to AMD 65 billion, but taxes remained unchanged,' he said.
`Average annual taxes from this industry amount to AMD 4.7- 5.2

Khachatryan pointed out documentation turnover as another painful problem.

He said that the discussion was focused on favorable impacts of a
series of tax reforms on business and removal of obstacles.

`The aim is to let businessmen focus only on implementation of their
business programs,' he said. `We also spoke about current things in
this area and presented a package of reforms.'

Khachatryan also singled out creation of a risk-controlling system
among the State Revenue Committee's top-priority objectives.

President Serzh Sargsyan, Agriculture Minister Sergo Karapetyan and
representatives of more than 20 processing industry companies were
present at the meeting. -0-

From: A. Papazian