FARMS WITH TURNOVER OF UP TO 8 MLN DRAMS TO BE EXEMPT FROM VALUE ADDED TAX

YEREVAN, AUGUST 8, NOYAN TAPAN. In 2005-2006 alone, 68 small
enterprises have been set up in Armenia’s agriculture. These
enterprises need serious financial and legislative assistance. The
RA Minister of Agriculture Davit Lokian said this during a working
meeting with Armenian President Robert Kocharian on August 8. According
to the RA President’s press service, the current situation in the
Armenian agricultural sphere, particularly the situation in the
processing sector and the problem of promotion of new enterprises
were discused at the meeting. Attaching importance to this problem,
Robert Kocharian said that it should represent a continuous program,
with processing being made the main driving force for agricultural
development. The Armenian President considered it necessary to submit
to the National Assembly and adopt the laws on food security and
organic agriculture in the shortest possible time, as well as the law
on village and agricultural development, which will specify the policy
of agricultural subsidization and price regulation. It was noted during
the press conference that starting January 1, 2009, value added tax
(VAT) will be used in agriculture. An agreement was reached to exempt
farms with a turnover of up to 8 mln drams (about 19 thousand USD)
from VAT. Farms with a turnover exceeding that amount will pay 8-12%
VAT, which will not have a serious impact on their activities.