ArmInfo. The Armenian government intends to create equal conditions for producers and importers of cognac. Amendments to the Tax Code and related laws were made at a meeting of the RA National Assembly on May 23 in the first reading.
Presenting the draft amendments, RA Minister of Agriculture Artur Khachatryan noted that equal conditions will be created for large and small companies that produce, sell and import brandy alcohol and bottled cognac. This will allow you to start producing beverages and small businesses. Producers and importers of cognac and brandy alcohols, as well as for brandy sold and bottled in brandies, will be provided with an equal competitive field, imports and sales of cognac spirits will decrease. It is envisaged, in particular, to establish duties on imports of cognac. To produce distilled cognac, local companies pay a state duty of 15 million drams, while importers of this alcoholic beverage do not pay at all. Now it is proposed to establish a common duty for all, which will drop from AMD 15 million to AMD 5 million for the first 100 thousand liters (in terms of 100% of alcohol). For each next liter of cognac, the payout rate will be 50 drams for retail (bottles up to 2 liters). For a semi-finished product, that is, brandy alcohol in large containers (for future bottling) it will be necessary to pay 300 drams. Thus, conditions for local and foreign products will be equalized, opportunities for the development of domestic production, rather than beverages from imported raw materials, will be created.
According to the data of the National Statistical Service of Armenia, cognac production in Armenia increased by 39.4% to 30010.6 thousand liters over the past year. According to the NSS, the share of exports of alcoholic and non-alcoholic beverages in the country's total exports is about 12.4%, with non-denatured ethyl alcohol, alcohol below 80%, liqueurs and other beverages accounting for 10.7%, and export of grape wine and champagne 0.41%.