YEREVAN. - Development programs in Armenia’s Dilijan city must be allowed to be exempted from taxes, Vache Terteryan, First Deputy Minister of Territorial Administration and Emergency Situations said in the parliament on Wednesday presenting a bill on attracting investments to Dilijan City.  

The bill also covers Haghartsin, Teghut and 4 other villages surrounding the city, as well as Dilijan National Park.

The city is proposed to be developed as a green center of innovation and tourism. Besides, it is proposed not to permit mining industry, except for mineral water and raw material for ceramics, as well as power generation with the exception of alternative projects (solar, wind, geothermal or biomass). Chemical and processing industry will not be permitted in a number of city zones either.  

The prohibition will not extend to the already operating industrial projects.

Investments will be facilitated by a council, which will be set up by the Municipality of Dilijan to arrange the planning and investment issues.

In the course of the investment programs, ‘green’ architecture, including energy-efficient technologies and green roofs, will be promoted.

Investors may get tax exemptions, which the Armenian government will confirm for each program separately.  

Both import of goods and their delivery to the contractors in the framework of the program can be exempted from VAT.

The income, which will be reinvested into the program till April 15 of next year, can be exempted from income tax. Non-residents participating in the program will also be exempted from it.

Programs on raising seismic protection and energy-efficiency of buildings can also be exempted from VAT.   

New manufacturing and public entities (except for shops) can be exempted from land and property tax for 2 years.