ArmInfo. The tax on grape vodka production will be reduced in Armenia. The relevant draft amendments to the Laws "On notification of activities" and "On state duty" were approved at the Feb 19 sitting of the Armenian Parliament in the second and final reading.
Introducing the amendments on February 19, Deputy Minister of Agriculture Robert Makaryan said the current tax impedes the activity of small producers. Therefore there is nearly no grape vodka production in the country. This also affects the farmers' activities. In addition, he said, grape vodka is necessary for production of some wine sorts. Meantime, local producers use wheat vodka instead, which is banned by the EU and Russian legislation. So, all this hampers exports. In this light, the Bill looks to decrease the tax from 15 million drams to 50,000 drams annually. The new rate will help the processing enterprises resume procurement. The bill will also boost the grape procurement and increase the number of alcohol producers by 20.
According to the National Statistical Service of Armenia, in 2015 alcohol production fell for low demand caused by a 3.9% export decline. Brandy production in Armenia fell 9.5% in 2015 to 16.5 mln liters. Wine production fell 4% to 5.9 mln liters, while vodka production fell 1.6% to less than 9.4 mln liters. Champagne production totaled 681.1 thousand liters versus 634.4 thousand liters in 2014. Beer production totaled 20.7 mln liters (down 12.8%). Whiskey production totaled 1,170.2 thousand liters. Soft drinks production totaled 81,718.5 thousand liters which is 2% more than in 2014. Export of strong and soft drinks accounted for 12.4% of total export.