In response to a question from deputy of the Prosperous Armenia Party Mikayel Melkumyan during a parliamentary session today, Deputy Prime Minister Mher Grigoryan said the Armenian authorities can’t consider privileges for cars imported to Armenia with the country’s colleagues in the Eurasian Economic Union anymore.

The deputy stated that his Kazakh colleagues have complained about the flow of cars exported from Armenia where, before the end of 2019, customs clearance was cheaper so long as there were national duties, not Eurasian duties in Armenia, and as a result, many Kazakh car dealers would receive cars from Armenia.

“Nevertheless, the Kazakh car dealers are setting privileges for themselves. The VAT in Armenia is 20%, in Kazakhstan — 12%. Why isn’t Armenia lowering the VAT in order to compete in the Eurasian markets?” Melkumyan asked. Based on his information, in 2019, Armenia imported about 190,000 cars, of which 22,000 were re-exported to Kazakhstan and 77,000 were re-exported to Russia. In response, Grigoryan noted that if those cars were produced in Armenia, it would be possible to try to protect the interests of the Armenian automobile industry since, in this case, Armenia’s arguments would be weightier.

Grigoryan also reminded that Armenia had initially been prohibited from maintaining the duties for cars so that the country’s auto market could adapt to the new conditions, but alongside that, it was stated that cars imported during the transitional period are only envisaged for use in Armenia so that there is equal competition in the markets of the Eurasian Economic Union.