Car importers ask Armenian President not to sign draft amendments to  Tax Code

ArmInfo.Armenian car importers are holding a protest - this time at the presidential residence. The  latter are dissatisfied with the amendments to the Tax Code adopted by the National Assembly on November 16, which oblige them to pay tax on 20% of net income from the sale of a car. Previously, they protested with this request at the government building, as well as at the State Revenue Committee of the republic. They ask the president not to sign the document in the proposed version.

Car importers note that prices for cars imported from abroad are much  more favorable than those available in official car showrooms and  dealers. That is why there are many citizens who are willing to wait  several months.

At the same time, they mentioned that such companies do not have much  income from this business. "I assure you, the experience of the last  ten years shows that there has not been a single case where we  received 20% of the income from the sale of one car," a  representative of the American Global Group said.  As a result of the  legislative change, they will have to increase the prices of imported  cars in order to be able to pay the established taxes. Thus, the  proposed initiative will become a burden for both business entities  and clients.

They also ask for at least a 6-month transition period, as well as a  level playing field for all market players.  "For some reason, these  changes do not apply to official distributors and dealers," a  representative of the American Global Group noted in a conversation  with reporters.

The importers reported that they are preparing a joint letter to  President Vahagn Khachaturyan, asking him not to sign the bill so  that the new amendments do not at least apply to cars already  traveling to Armenia.  "The law will apply from December 1, and it  takes at least 3 months to purchase and transport a car from the USA  to Armenia. Now we have pre-signed contracts that actually specify  the sales price, and companies like ours are forced to tell the  buyers that they must buy this car at more than the price agreed on  in the document," they noted.

51.2 thousand cars were imported to Armenia in H1 2023, 3.5-fold  times higher than a year ago. The customs value increased 3.6--fold -  to $770.5 million. Passenger cars were imported mainly from the USA  (37.3%), Japan (18.4%), Mexico (17.5%), Germany (5.6%) , China  (4.5%), Canada (3.7%), as well as from India, Italy, Turkey,  Slovakia, Hungary, Sweden, Russia, Austria, Indonesia, Finland,  Spain, Thailand, Romania, France, South Africa, Belgium.