Wednesday, February 21 2018 14:45
Naira Badalian

Armenia does not abandon the idea of imposing VAT on agrosphere

Armenia does not abandon the idea of imposing VAT on agrosphere

ArmInfo. Armenia did not abandon the idea of abolishing the preferential tax regime for agricultural producers. At this stage, as the Deputy Minister of Finance of Armenia David Ananyan told ArmInfo correspondent, the department reflects on possible mechanisms for abandoning the practice of non-use of VAT for agricultural production.

According to the Deputy Minister, currently the Ministry of Finance is in a passive search for approaches, as well as the development of a possible tool to ensure the transition of the agricultural sector, now taxed from turnover, to the VAT tax field. Discussions in this direction are ongoing.

Representatives of a number of spheres of agriculture even spoke in favor of the abolition of the preferential tax regime for agribusinesses. During the Ministry of Finance discussions, the cheesemakers complained that they refuse to accept goods in large retail chains, since they are taxpayers of the turnover tax. At the same time, supermarkets are ready to purchase the product from a reseller, who pays VAT, as this gives them the opportunity to refund (calculate) the tax.

The Ministry of Finance, Ananyan said, has no right to force the supermarket to buy goods from the cheese, as everyone decides how to organize their business. "We can offer representatives of the agrosphere to move to the field of VAT regulation at a rate of 10% -v, but without the right to calculate for producers," the deputy minister said. In fact, as the representative of the Ministry of Finance noted, cheese makers agree on these conditions, since if we calculate the cost of 1 kg of cheese, conditionally, at a rate of 1400 thousand drams, of which 1000-1100 drams is the cost of milk they buy from the farmer, it turns out that for the cheese-maker it is not so reasonable to seek the calculation for VAT.  However, not everything is so unambiguous. As David Ananyan noted, the producers of dried fruits spoke out against the idea, as their product cost structure differs radically from the product of cheese-makers.  Thus, the Armenian Ministry of Finance has not found the mechanism of abolishing the preferential tax regime, which is optimal for all parties.

It should be noted that the use of VAT for agro-industry is among Armenia's obligations to the WTO. On February 5, 2003, Armenia formally, according to WTO procedures, became the 145th member of this trade organization. In the process of Armenia's accession to the WTO, all the legislative changes necessary to bring the existing laws into line with the WTO norms were made, and after joining the WTO, the RA does not have obligations to change a law or subordinate act during the subsequent time. Even then, in a number of negative consequences for Armenia, the imperative to abolish the current system of exemption from value added tax of local producers was noted at the first stage of sales (only the sale on the part of the producer is released, further sales levels are taxed for the entire volume of sales of agricultural products) that exemption from VAT is now an integral part of the local agricultural producer protection system. It was also noted that after Armenia's accession to the WTO, it will take time to abolish the existing tax exemption system and introduce a new system of protection, the subsidy system. The parties agreed to provide Armenia with a deadline until 2009 to implement these changes. Nevertheless, it is obvious to this day that, in general, the transition to a subsidy system can be quite painful for the country's budget, which will also affect the sustainability of economic growth.

In the meantime, despite the economic activity recorded in Armenia in 2017 and January 2018 of 10.2% and 7.7%, respectively, the agricultural sector, in 2017, delayed in the recession, it only slowed down to 3% from 5.2% in 2016, and in January of this year. The volume of gross agricultural output decreased by 0.4%, amounting to 17.5 billion drams.

POST A COMMENT
Input digits     


News
Armenian nuclear power station has a resource for work for another 30  yearsArmenian nuclear power station has a resource for work for another 30 years
IMF hopes for effective work with the new government team on the  issue of economic reforms in ArmeniaIMF hopes for effective work with the new government team on the issue of economic reforms in Armenia
EBRD expressed readiness to finance new long-term health programs in  ArmeniaEBRD expressed readiness to finance new long-term health programs in Armenia
Minister of Agriculture received the delegation of the Austrian  Development AgencyMinister of Agriculture received the delegation of the Austrian Development Agency
Minister: Work on verification of all mining deposits in Armenia will  begin in the very near futureMinister: Work on verification of all mining deposits in Armenia will begin in the very near future
Ministry of Finance and the Eurasian Development Bank are considering  opportunities to expand cooperation areasMinistry of Finance and the Eurasian Development Bank are considering opportunities to expand cooperation areas
WHO to provide consulting support to Armenia in expanding the health  insurance componentWHO to provide consulting support to Armenia in expanding the health insurance component
Lydian Armenia welcomes the call for responsible miningLydian Armenia welcomes the call for responsible mining
Official: Since June 1, Armenian Nuclear Power Plant will be stopped  for repair worksOfficial: Since June 1, Armenian Nuclear Power Plant will be stopped for repair works
Minister: Armenia prefers Russian gas, since it is 10% cheaper than  Iran`sMinister: Armenia prefers Russian gas, since it is 10% cheaper than Iran`s
GeoProMining: Criminal elements in Armenia hinder the activity of  large Russian investorsGeoProMining: Criminal elements in Armenia hinder the activity of large Russian investors
Pashinyan: The State Revenue Committee is tasked to increase the revenue part of the budget several times by removing the shadow economyPashinyan: The State Revenue Committee is tasked to increase the revenue part of the budget several times by removing the shadow economy
At the Armenian consumer market, the annual inflation in April 2018 was 2.4%At the Armenian consumer market, the annual inflation in April 2018 was 2.4%
French company to be consultant in interstate highway M-6 restoration and improvement projectFrench company to be consultant in interstate highway M-6 restoration and improvement project
Armenian PM demands to strengthen control over quality of agricultural products exported to RussiaArmenian PM demands to strengthen control over quality of agricultural products exported to Russia
The annual revaluation of AMD against USD in April 2018 was 1% with inflation of 2.4%The annual revaluation of AMD against USD in April 2018 was 1% with inflation of 2.4%
Armenia counts on the beginning of construction of the second power unit of Yerevan TPP in the very near futureArmenia counts on the beginning of construction of the second power unit of Yerevan TPP in the very near future
Nikol Pashinyan took part in work of 18th Forum of Union of IT Companies (UITE)
RA Ministry of Agriculture intends to continue and expand scope of cooperation with FAO
In the Ministry of Agriculture, EBRD presented Bank`s strategy and priorities for 2018-2019 in Armenia
Armenian Minister of Finance received head of Armenian office of European Bank for Reconstruction and Development
Fitch Affirms ACBA-Credit Agricole Rating at `B +` with Stable  OutlookFitch Affirms ACBA-Credit Agricole Rating at `B +` with Stable Outlook
Pobeda airline offers Rostov-Gyumri flight passengers a transfer to Yerevan
Armenia and Israel will not apply double taxation to business
Armenia`s share in customs duties distribution to increase within EAEU framework
The Armenian government will have the right to set other state tax rates
Armenian government intends to create equal conditions for producers and importers of brandy
Ambassador: Germany is ready not only to maintain current economic ties with Armenia, but also to take steps towards further cooperation.
Armenian government intends to complete all joint programs with IMF
EBRD is ready to assist Armenia, both in the energy sector and in the development of infrastructures


Exchange rates
25.05.2018
RUB7.81-0.05
USD482.760.11
EUR565.36-0.74
GBP644.63-1.83
CAD373.77-1.57
JPY44.100.10
CNY75.59-0.04
CHF486.11-1.02

Experts
Mher Arakelyan:  Armenia`s payment business has great prospectsMher Arakelyan:  Armenia`s payment business has great prospects
Rating-Agentur Expert RA GmbH and AmRating issued an industry report  on Armenia`s banking systemRating-Agentur Expert RA GmbH and AmRating issued an industry report on Armenia`s banking system
Igor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care ofIgor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care of
Ara Khzmalyan: Armenia is comfortable to Russian touristAra Khzmalyan: Armenia is comfortable to Russian tourist
The Armenian delegation to the US followed the advice of President TrumpThe Armenian delegation to the US followed the advice of President Trump
Outflow of population and passivity of the Diaspora pushes property prices downOutflow of population and passivity of the Diaspora pushes property prices down
Finombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and  non-creditworthy consumersFinombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and non-creditworthy consumers
Vahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distancesVahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distances
Gagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directionsGagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directions
Vitaly Nesis: Armenia is very promising from the geological point of viewVitaly Nesis: Armenia is very promising from the geological point of view
The market of OSAGO goes into virtual spaceThe market of OSAGO goes into virtual space
Ishkhan Mkhitaryan: ArCa and Mir complete the technological part of the project of interaction, business for banksIshkhan Mkhitaryan: ArCa and Mir complete the technological part of the project of interaction, business for banks
The second stage of implementation of the program for prolonging the lifetime of the power unit N2 of the Armenian NPP beginsThe second stage of implementation of the program for prolonging the lifetime of the power unit N2 of the Armenian NPP begins
Successful business is forging for years - to the jubilee of IC Successful business is forging for years - to the jubilee of IC "INGO Armenia"
Armen Shahnazaryan: The double increase in the insurance portfolio of EIAA ICJSC by the end of 2018 is quite feasibleArmen Shahnazaryan: The double increase in the insurance portfolio of EIAA ICJSC by the end of 2018 is quite feasible
Expert: Real estate market of Armenia started demonstrating weak  signs of recovery in I half-yearExpert: Real estate market of Armenia started demonstrating weak signs of recovery in I half-year
Amulsar: Ecology and РeopleAmulsar: Ecology and Рeople
GeoProMining - ten years of work for the benefit of the country, at the forefront of gold miningGeoProMining - ten years of work for the benefit of the country, at the forefront of gold mining
SolarOn will become a catalyst for the development of solar energy in  ArmeniaSolarOn will become a catalyst for the development of solar energy in Armenia
Armenia fits well  for installation of container mini hydroelectric power stations, developed by RosatomArmenia fits well  for installation of container mini hydroelectric power stations, developed by Rosatom

Search by date

Government Bonds

 

ISIN AMGB1029A250
Auction ID AMGB1029A250A
Date 12.05.2017
Issue date 29.10.2015
Issue volume (AMD) 50 000 000 000
Maturity date 29.10.2025
Coupon year yield 11.00%
Auction volume (AMD) 1000 000 000 - 2.000 000 000
Auction date 12.05.2017
DLS
Total amount (AMD) 1 000 000 000
Amount of the total bids (AMD) 787 200 000
Amount of the total accepted bids (AMD) 787 200 000
Cut of yield (%) 10,6447
Weighted avrage yield (%) 10,6447
Auction max  yield (%) 10,6447
Auction min  yield (%) 10,6447
Number of participants 5
ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000

Commented
Gyumri programmers won on hekaton Gyumri programmers won on hekaton "Innovative ideas for tourism development"
Armenian Lori opens a large international ski resortArmenian Lori opens a large international ski resort
A number of light and alcohol industry enterprises of Armenia will be  provided with state supportA number of light and alcohol industry enterprises of Armenia will be provided with state support
Expert: The attitude of Armenian public to the nuclear power industry is demonstrated not by the promiseExpert: The attitude of Armenian public to the nuclear power industry is demonstrated not by the promise
Expert: The biggest gap in procurement legislation is the lack of an institution for accountability for its violationExpert: The biggest gap in procurement legislation is the lack of an institution for accountability for its violation
Maxim Sokolov: Russian Federation remains the main trade partner of  ArmeniaMaxim Sokolov: Russian Federation remains the main trade partner of Armenia
Russian MP: Restoring railway communication between Armenia and  Russia through Abkhazia and Georgia meets the economic interests of  Yerevan and MoscowRussian MP: Restoring railway communication between Armenia and Russia through Abkhazia and Georgia meets the economic interests of Yerevan and Moscow
Amulsar program was awarded a certificate of compliance with ICMC standards in pre-production cycleAmulsar program was awarded a certificate of compliance with ICMC standards in pre-production cycle
Expert: Subsidizing is the worst model of softening the results of price increaseExpert: Subsidizing is the worst model of softening the results of price increase
Fitch improved outlook on Yerevan`s rating from Fitch improved outlook on Yerevan`s rating from "Stable" to "Positive"
Expert: Energy component of the Armenia-EU agreement conceals big threats for ArmeniaExpert: Energy component of the Armenia-EU agreement conceals big threats for Armenia
Armenian Energy Ministry raises permissible threshold of autonomous  generation of electricity on the basis of RES to 500 kW / hArmenian Energy Ministry raises permissible threshold of autonomous generation of electricity on the basis of RES to 500 kW / h
Beeline hosted the largest this year`s "Client`s Day"
Armenian Deputy Energy Minister urged ECC members to pay more  attention to climate change and greenhouse gas emissionsArmenian Deputy Energy Minister urged ECC members to pay more attention to climate change and greenhouse gas emissions
Compensation for OSAGO shows an impressive annual increase Compensation for OSAGO shows an impressive annual increase
In Armenia, imported electric vehicles will be exempt from all types of taxesIn Armenia, imported electric vehicles will be exempt from all types of taxes
David Lokyan: The volume of own incomes of Armenian communities will grow by 10%David Lokyan: The volume of own incomes of Armenian communities will grow by 10%
Human Rights organization Human Rights organization "Driver`s Friend": ban on right-hand drive cars - nothing more than a regular business project
In Q1 2017 foreign investments in the volume of $ 1 billion were  received to the real sector of Armenian economy  with annual growth  of 36.6%In Q1 2017 foreign investments in the volume of $ 1 billion were received to the real sector of Armenian economy with annual growth of 36.6%
Ameriabank is awarded Euromoney Award for Excellence 2017 as Best  Bank of the Year in ArmeniaAmeriabank is awarded Euromoney Award for Excellence 2017 as Best Bank of the Year in Armenia
Chinchilla fur factory will be established in ArmeniaChinchilla fur factory will be established in Armenia
Narek Sargsyan: Southern Avenue constructions are planned to be started this fall in the capital of ArmeniaNarek Sargsyan: Southern Avenue constructions are planned to be started this fall in the capital of Armenia
Thanks to cooperation between VivaCell-MTS and Fuler House-Building Center, 146 families in Armenia received housesThanks to cooperation between VivaCell-MTS and Fuler House-Building Center, 146 families in Armenia received houses
Armenian Ministry of Economy Development and Investment promises to drive the country`s  export extent of GDM to 45% in 5 yearsArmenian Ministry of Economy Development and Investment promises to drive the country`s  export extent of GDM to 45% in 5 years