The NA Standing Committee on Economic Affairs debated in the second reading the bill providing for addenda and amendment in the law on State Duty.
According to the RA Minister of Economy Vahan Kerobyan, the aim of the draft is to regulate the foreign trade of goods of strategic importance for Armenia (ferrous and non-ferrous metals and products produced from them), to create longer production chains, to promote the deepening of processing of ferrous and non-ferrous metals on the spot. It is proposed to create favorable conditions to reduce imports from abroad and to produce and export local products with higher added value. The Executive proposes to introduce a state tax on the export of certain products.
During the Q&A session, the Minister presented the measures implemented by the Government in the field, the investment policy, and the support mechanisms.
The Deputy Chair of the Committee Babken Tunyan noted that there were many debates on this issue, including with the companies operating in the field. According to the deputy, those 6 companies are also saying that they will have problems after the adoption of this law. “Some have invested with credit funds, had some time to understand their financial planning. I understand that you want to attract with hard mechanisms to go the way of establishing deeper productions, they also have similar plans, but it is necessary to make sure that they are able to realize this opportunity,” the Deputy Chair of the Committee opined and pointed out several options to solve the problems, including the use of a certain ‘cashback’ mechanism.
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“You talked about the support mechanisms, but now the duty is actually increasing so much that no matter how much subsidized credit that person gets, he will not be able to export that product, it will not be competitive,” Babken Tunyan mentioned. According to him, we need a regulation that is not only aimed at deepening the production chains, but also does not disturb the competitive environment and does not push several companies out of the market. According to the deputy, in this state, however, the draft still contains that risk. Taking into consideration the risks, Babken Tunyan proposed to change the date of entry into force of the law and to discuss the issues in detail before the entry into force.
An agreement was reached to set the deadline for the tax to come into effect on January 1, 2025.
The issue was endorsed by the Committee.
National Assembly of the Republic of Armenia