Armenia exempts armament imports from VAT
The Armenian National Assembly passed at the second and final reading the bill proposing to exempt armament imports from value added tax in compliance with agreements between Armenia and Russia.nbsp;nbsp;br / br /
YEREVAN, November 17. /ARKA/. The Armenian National Assembly passed at the second and final reading the bill proposing to exempt armament imports from value added tax in compliance with agreements between Armenia and Russia. nbsp;br
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Vardan Aramyan, finance minister, presenting the bill to lawmakers, said that the government finds such kind of taxation for military products unreasonable, since these products will never be sold at domestic market and will not be exported to third countries.nbsp;br
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“In fact, we are getting rid of unnecessary actions in the government budget, since the paid supply tax has been returned from the budget any case, in accordance with the VAT return law,” Aramyan said. nbsp;br
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He stressed that this applies only to military-use products bought from Russia.nbsp;br
Yesterday, at their regular Thursday meeting, the Armenian cabinet ministers upheld a draft agreement with Russia to borrow $100 million from the latter for defense needs and sent it to the National Assembly for ratification.nbsp;br
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In accordance with the agreement, Russia will provide a state export loan to Armenia for supplying Russia-made military products to Armenia. nbsp;br
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The loan will be provided at a three-percent annual interest rate for a 15-year period which begins in 2023 and ends in 2037, but the lent financial resources will be used already in 2018-2022.nbsp;br
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The agreement was signed on October 24, 2017.nbsp;br
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Then government says that Armenia should use the loan for financing up to 90% of each contract on supply of ammunition.nbsp;br
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In compliance with its contractual obligations, the Armenian side has to pay no less than 10 percent of the contact cost.nbsp;br
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The government also says that the aim of the agreement is to strengthen friendly relations between the two countries.nbsp;br
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In July 2015, the countries signed a $200-million state export loan agreement for supply of Russia-made military products to Armenia.nbsp;br
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The loan was provided for 13 years at a three-percent interest rate. Under this agreement, Armenia buys from Russia, rocket launchers, grenade launchers, sniper riffles, missiles, flamethrower systems, armored vehicles and engineering devices from Russia. -0---br
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