Duty Free zone may cause problems

“For two years we have been discussing the possible ways of development with the concessionaire and we will soon see the results,” said Deputy Minister of Economy Vahe Danielyan in connection with the Duty Free zone that had been opened for about a year ago at Armenian Zvartnots International Airport.

Obviously Armenian legislation in sense of tax break is not different from those of other countries’: at Armenian Duty Free zone, in accordance with the Law, there is no taxing on profits, VAT, customs fee, but income tax as long as all products to be exported. Only 5 per cent of the products can be sold in Armenia while in this case only VAT and customs fees are levied.

“The Free Duty zone can cause problems for local, domestic producer. The project must have clear citing on steps to be taken to prevent the situation when the duty free zones are in competition with domestic producer, nor foreign,” said Danielyan.