ArmInfo.On March 20, the Armenian government approved a program to promote the domestic sale of certain types of goods of Armenian origin, for which restrictions have been imposed on their export from the Republic of Armenia. Manufacturers of metal products from local raw materials will be able to count on a subsidy of 10 thousand drams for each ton sold.
As stated in the explanatory note to the document, the decision was made due to the reduction of risks associated with the liquidity of goods of strategic importance for the Republic of Armenia (ferrous and non- ferrous metals and products made from them), the expansion of the production chain in the Republic of Armenia, stimulation of the production of more complex products by local metallurgical and metalworking enterprises, expansion of production volumes, ensuring economic growth and increasing the level of employment.
The authors of the support program, represented by the Ministry of Economy, recalled that in February 2024, the Parliament adopted amendments to the RA Law , which provide for the definition of activities for the export of certain types of simple products made of ferrous and non-ferrous metals, considered semi-finished products, subject to licensing, and the collection of state duty for issuing licenses. It was noted that as a result of the above, metallurgical and metalworking enterprises will be interested in switching from simple ingots to the production of products with higher added value. To this end, local companies plan to deepen metal processing, producing profiles, wire, aluminum radiators, and fittings from the resulting ferrous metal castings, the export of which is exempt from state duty.
Considering that the Law comes into force on January 1, 2025, companies in the sector expressed concern that the implementation of the law will create financial difficulties for them, since they are not yet ready to export more complex products as a result of their investments.
There are already enterprises that have been able to ensure the implementation of the first and second stages of production, but there are also those that have not yet been able to ensure the full production chain. Therefore, the Ministry of Economy admitted that those economic entities that are not yet ready to ensure the 2nd stage of production and could sell their products outside the Republic of Armenia at a higher price, but based on the provisions of the Law, it is no longer economically profitable for them to export these products, may suffer serious economic losses, up to the termination of their activities.
This Project is aimed at providing assistance to these economic entities at the initial stage so that they do not suffer as a result of the adoption of the Law. At the same time, it should be noted that during this period, these economic entities will generate revenues to the state budget of the Republic of Armenia in the form of VAT and other taxes, which in total will exceed the amount of support provided.
Thus, when local enterprises sell the goods specified in the Project for processing on the domestic market, the state will subsidize them in the amount of 10 thousand drams for each ton sold.
, - the authors of the initiative noted.
According to statistics, about 60,000 tons of the goods specified in the project are sold in the Republic of Armenia. Considering that the program will come into force no later than March, 50,000 tons will be produced by the end of the year, and with a payment of 10,000 drams for each ton, the annual support volume will be 500 million drams.
According to statistics, 5-7 thousand tons of the products specified in the project are sold in the Republic of Armenia every month, and the subsidy for each ton will be 60-84 million drams per month. But as a result of processing the same 5-7 thousand tons, taxes in the amount of 60,000-70,000 drams for each ton will go to the state budget, the Ministry of Economy assured.
