Thursday, 22 January 2015
Government Takes Unprecedented Step to Promote Exports
A Cabinet sitting was held today, chaired by Prime Minister Hovik Abrahamyan.
In an effort to step up the pace of economic growth, the Government approved a bill on amendments to the Law on Profit Tax, which provides additional tax incentives to those Armenia-based taxpayers eligible under the Government’s export promotion-oriented program, In particular, the profit tax for those businesses exclusively engaged in exports with at least AMD50 billion annual turnover will be reduced tenfold from the currently applicable 20 percent to 2 percent.
“This is a non-standard step through which we are trying to promote exports,” the Prime Minister said in this connection, “Should we have such partners as may ensure annual exports worth over AMD50 billion, we will get additional jobs and extra budget revenue.”
The meeting approved a bill on amendments to the Law on Taxes, to clearly define the grounds and methods for the calculation of indirect taxes and improve the methodology for the assessment of taxable facilities and fiscal liabilities.
The aforementioned bills will be submitted to the National Assembly in the manner established by law.
The Government established that within two years from the date of entry into fore of the Eurasian Economic Union Accession Treaty, white sugar imports from third countries are allowed on condition of 10 percent import duty payment for quantities not exceeding the annual cap of four thousand tons and approved the division of market quotas among the participants of foreign economic activity.
Following the effectiveness of the EEU Accession Treaty through the year 2025, the Republic of Armenia shall be granted a customs duty holiday for such quantities of imported raw cane sugar as will be free from additives or coloring matters and shall be used only for processing purposes.
The Government next established that such raw sugar imports will be allowed providing that a certificate is issued by the duly authorized authority in accordance with the applicable legislation.
The Executive approved draft presidential decrees on relieving Armen Gevorgyan from the duties of Armenia’s National Coordinator for CIS Affairs and appointing Vache Gabrielyan to the post of Armenia’s National Coordinator for CIS Affairs.
With another decision, Vache Gabrielyan was appointed Chairman of Board of Trustees of the Foundation of Restoration of Lake Sevan Trout Resources and Development of Fish Farming in Armenia.
