Gem and jewelry sector to be exempt from 1% mandatory profit tax

[Khondkarian Raffi]

Gem and jewelry sector to be exempt from 1% mandatory profit tax on
revenues from raw material import and export deals

YEREVAN, MAY 30, NOYAN TAPAN. At the May 21 sitting, the Armenian
government approved the bill on amendments to the Law on Profit Tax and
the Law on Value Added Tax. By these amendments, henceforth no 1%
profit tax will be levied on revenues from jewelry raw material import
and export deals. By the amendment to the Law on Value Added Tax,
purchase of raw material will be completely exempt from VAT, and only
sale of finished products in Armenia will be taxed.

In the words of Prime Minister Tigran Sargsyan, these amendments allow
to create a favorable tax field in the gem and jewelry sector. The
prime minister said that in the opinion of representatives of the
International Association of Jewelers, it will contribute to both the
sector's development and investment attraction. He added that these
amendments can also be viewed as anti-crisis measures.

During a briefing after the sitting, the Minister of Economy Nerses
Yeritsian stated that there is a serious opportunity and prospect of
development in the gem and jewelry sector. According to him, thanks to
the amendments, the jewelry sector receives status of a free economic
zone - from the import of raw materials up to their export. He assured
those present that as a result of the amendments made to the laws, the
companies of the sector will come out of the shadow sphere and have the
opportunity to increase their turnover.

N. Yeritsian said that by the agreements reached with Diasporan
Armenian businessmen, work on ensuring competivity will be done in
Armenia's gem and jewelry sector.