Armenia`s ministry of economy proposes bill to rule out duty-free import of electric vehicles 

ArmInfo. The Ministry of Economy of Armenia has proposed a bill aimed at excluding cases of duty-free import of electric vehicles to the Republic of Armenia if they are imported for the purpose of subsequent disassembly, dismantling and sale as spare parts. The legislative initiative is posted on the single portal of legal acts.

As stated in the explanation to the document, in accordance with Article 64 of the Tax Code of the Republic of Armenia, the import and (or) sale of electric vehicles classified by EAEU TN VED codes 8702 40 000, 8703 80 000 and 8711 60 are exempt from value added tax until January 1, 2026.

At the same time, this benefit is also enjoyed by those who import electric vehicles not for operation, but for disassembly, dismantling and sale as spare parts. As a result, organizations that import spare parts and pay taxes established by law find themselves in unequal price conditions with those who, taking advantage of the benefits provided by law, import electric vehicles for the purpose of their subsequent disassembly, dismantling and sale as spare parts.

According to the Ministry of Economy, state registration of imported vehicles will eliminate this loophole.

In this vein, it is proposed to increase the fine to a thousandfold  minimum wage for failure to register an electric vehicle imported to the Republic of Armenia within the quota within the established period, in the case provided by law.

In case of deregistration of electric vehicles imported to the  Republic of Armenia under the privilege established by the Tax Code, within one year, except in cases where there is an accident certificate issued by the Ministry of Internal Affairs of the Republic of Armenia, a fine of a thousandfold minimum wage is established.

On December 28, 2023, the Armenian Cabinet approved a decision stating that an agreement was reached during the Eurasian Intergovernmental Council to extend the privilege for the import of electric vehicles for another two years. For Armenia for 2024-2025. A tariff quota of 8,000 electric vehicles was established for the year.