It is necessary to create conditions so that car importers do not suffer in the transition period, when the customs legislation of the Eurasian Union (EAEU) starts operating without costs in Armenia next year, said the author of the bill, the Prosperous Armenia Party MP, Mikayel Melkumyan.

According to him, the adoption of this bill should mitigate the consequences for car dealers, since due to the expiration of the period established for Armenia by the EAEU, the influence of uniform customs rates can cause significant damage to this business, since prices for imported cars in the country can increase significantly.

Thus, he proposes to free auto importers at the border when importing cars with a production period of 3 to 7 years from VAT for a year so that it is possible to assess the situation on the market, not cause serious fluctuations in it that could harm this business, and prevent further price increases.

The MP noted that the market has already recorded a serious increase in car prices, and this is connected with the approaching deadline for the introduction of new uniform customs rates of the EAEU.

“Armenia will enter the system of strict environmental administration in 2020, which will be regulated within the EAEU legislation. The adoption of this bill will facilitate the introduction of vehicles with lower emissions, increase the working capital of organizations that are taxpayers involved in this field of activity, as well as the formation of civilized and more secure legal relations for car dealers,” he said.

Nevertheless, the Government opposed the bill, believing that there was no serious need to abolish VAT.

Ultimately, the bill received a negative opinion of the relevant parliamentary committee.