RA AUTHORITIES TRY TO LIMIT IMPORT OF OLD AUTOMOBILES TO REPUBLIC

ArmInfo News Agency, Armenia
Nov 28 2006

RA authorities try to limit the import of old automobiles to the
Republic since 2007 by introducing changes to the present Legislation
that already has caused a rise in prices for the cars.

As the Head of the Economy Department of the RA Ministry of Nature
Conservation, Ashot Harutiunyan, told ArmInfo, RA Parliament has
passed a first reading of a bill on the rates of nature-conservative
payments. According to the Law, the rate for 5-10-year automobiles will
make up 2% and that for 10-15-year automobiles – 10%, for automobiles
older than 15, the rate will make up 20%. Harutiunyan noted that a
nature-conservation payment is introduced in Armenia for the first time
and the Law is called to limit the import of old vehicles to Armenia
as to reduce the emissions of harmful substances to the atmosphere.

To note the import of foreign cars to the Republic at present is laid
a 20% value-added tax and 10% of state due. The import of Russian
vehicles is exempted of state dues since 2004. Introduction of the Law
will increase the payment for the of over 15-years-old automobiles from
the present 32% to 52%. The Law has not been passed yet in the final
reading, however, it already caused a rise in prices of 10-20% for
automobiles in Armenia. According to the estimations of specialists,
a half of over 15-years-old vehicles, imported to the Republic and
their cost varies within $6,000.