YEREVAN, July 28. /ARKA/. Subsidies and grants in a number of segments of Armenia’s economy will be exempted from value added tax (VAT), Vardan Aramyan, Armenian finance minister, said Thursday at a regular cabinet meeting. 

The cabinet ministers decided at the meeting to establish a commission, which will qualify subsidies and grant programs as preferential for VAT exemption. 

“We receive from donor companies various grants and programs, under which credit lines are provided also to IT startups,” the minister said. “This leads to the necessity of VAT payment, but, in accordance with the law, these companies are exempted from VAT.” 

In his opinion, this makes confusion in tax payment, and it seems not clear whether a company must pay it or not and whether it is eligible to enjoy VAT preferences or not. 

Aramyan said that those programs in information technology, tourism, agriculture, science, education, energy and nature protection areas which can contribute to development of Armenia’s economy and create new jobs can be qualified as preferential. –0—-