YEREVAN. – The value added tax (VAT) payment at the borders of Armenia will continue. 

The Government on Thursday gave a negative conclusion to Prosperous Armenia Party MP Mikayel Melkumyan’s proposal to push back for 90 days the VAT payment at the country’s borders.

Prime Minister Tigran Sargsyan stated that the MP’s proposal is in line with the government’s views toward transferring the VAT from the borders to the domestic economy.  

“We will need 90 billion drams [approx. $215,981,100], since it may take one to three years from the time when we do not impose VAT at the border until the time when we can collect this tax from the economy. But we cannot immediately collect a 90 billion revenue,” Sargsyan said.     

In his words, the proposal is politically correct and it also stems from the Government policy, but the matter should be resolved step by step.