TAXES ON SECOND HAND CAR IMPORT GO UP

Yerevan, January 8. ArmInfo. Due to environmental issues an addition
tax will be applied to second hand cars import in Armenia, Ashot
Haroutyunyan, Head of Economy Office of the Ministry on Environmental
Protection, told ArmInfo.

He said that the additional taxes are based on the law on environmental
protection payments adopted by Parliament in December 2006 being into
force from January 2007.

As per it, the additional tax for the 5-10 year-old cars will equal
to 2% of customs taxes, and 20% for those run over 15 years. In order
to decrease environmental pollution, the law sets limit to import of
old automobiles to Armenia. Due to the law, customs clearance grew
up from 32% to 52% of the automobile cost.

Previously the environmental tax was paid only according to engine
power, now, the fuel used will be reflected in the tax as well. Cars
working on gas will be less taxed than those on patrol. The law
increased car prices by 10-15%. Half of the imported cars are over
15 years and cost about 5-6 thnd USD. 25 thnd cars were imported
to the country in 2006, and 25 thnd in 2005. Only 3% of these are
expensive ones.