ArmInfo. Retail jewelers are rapidly losing their competitiveness due to the tax amendments that came into effect in January 2025, resulting in higher prices for gold jewelry compared to neighboring countries. This was stated by Karen Martirosyan, an individual entrepreneur representing the sector, during a parliamentary hearing on February 7.
Martirosyan highlighted that the sector is struggling with increased production costs following the legislative changes, making Armenian jewelers' products less attractive to buyers from countries like Russia, Kazakhstan who now prefer to buy gold from neighboring countries.
Deputy Finance Minister Arman Poghosyan responded by stating that the government has considered how to make the value-added tax system more appealing to representatives of the jewelry industry. The Finance Ministry highlighted the experience of neighboring countries noting that in some countries, raw gold and diamonds are exempt from VAT, while the final product is already taxed. said the Deputy Minister In addition, the Finance Ministry representative stated that if 90% of all sales are generated by tourists, a reasonable question arises - why not transition to operating in the VAT mode, where the Tax free system is in place.
Tax expert Tigran Keyan argues that the Tax free system benefits the buyer - VAT is refunded on purchases made by foreign citizens when they leave the country where the purchases were made. noted Poghosyan.
