Your trusted source

Armenia’s agriculture will not be a tax-free sector starting 2020, according to the new Tax Code approved at the session of the Armenian government yesterday, ‘Haykakan Zhamanak’ daily says.

“The tax privileges for agriculture were to be revised on January 1 2015, which was one of the conditions for Armenia’s accession to the World Trade Organization. But the date was postponed. The new Tax Code actually sets a new date for revocation of agricultural tax privileges. Starting 2020, VAT will also be imposed on sales of agricultural machinery, pesticides, saplings and fertilizers. After the tax privileges for agriculture are dropped, the government will subsidize those branches that are able to partly or fully compensate farmers for their new tax burden. Yet serious calculation problems already arose here concerning production and sales of farm produce,” the paper says.