Armenian deputy finance minister says levying VAT from import of cars from Russia does not run counter to EEU regulations

ArmInfo. "We will keep levying VAT from the cars being imported to Armenia from the Eurasian Economic Union (EEU) member states, thereby exercising our right," said Armenian Deputy Finance Minister Armen Alaverdyan.   

On February 8, EEC Minister Tatyana Valovaya said that levying 20% VAT from the individuals importing cars to Armenia from the EEU member states runs counter to the legal and contractual framework of the organization. "There are no de jure non-tariff barriers within the EEU. We had such a barrier in Kazakhstan, but it was removed. Now we experience a similar barrier in Armenia," the minister said.  

Meanwhile, Alaverdyan said on the Public Television of Armenia that the right to levy VAT from the cars is fixed in the transitional provisions of the EEU and, consequently, Yerevan has not violated the EEU regulations.     

The deputy finance minister of Armenia pointed out that VAT is one of the most important sources of income in Armenia. Since Armenia joined the EEU in 2015, cars worth 22 bln AMD have been imported to the country and this amount was almost 20 bln AMD less than in 2014. 

Alaverdyan thinks the key reason of losses in the Armenian state budget is the fact that since January 2015 Armenia has been importing cars from Russia instead of the third countries. In this case, the citizens pay no customs duties but keep paying VAT.