YEREVAN. - The correct VAT regime will help increase compatibility of border production, Armenia’s Deputy Minister of Economy Emil Tarasyan said in the parliament today at the debate on the project of amendment to the Law on Tax Exemption of Economic Activity in Border Villages.

The draft law proposes adding two more border towns – Berd and Chambarak - to the list of beneficiary towns and villages. Besides, the companies operating in the areas stipulated by law will be given an opportunity to withdraw exemption regime and work applying VAT.

Need in this rises when the production is based on import raw materials or convenience food.  

“If the manufacturer doesn’t work in VAT regime, he can’t debit VAT for further deduction and has to include it in the value of the goods. And this lowers its compatibility. Now we want to solve this task,” Tarasyan said.