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Minister advises Armenian jewelers to hire Indian diamond-cutters to
enhance labor efficiency
by Arthur Yernjakyan
Saturday, November 22, 09:39
At the Nov 21 discussion on the jewelry and lapidary issues, Armenian
Economy Minister Karen Chshmarityan advised the Armenian jewelers to
hire Indian diamond-cutters to enhance labor efficiency.
The minister made this proposal in response to the jewelers' numerous
complaints about the current legislation and the requests to set
sectoral preferences. The jewelers also complain of the
uncompetitiveness in the foreign market as compared with the Indian
lapidary companies, whose products cost cheaper.
The jewelers unanimously pointed out that the current tax and customs
regimes in Armenia do not contribute to development of the lapidary
sector. In particular, they asked the minister to cancel the VAT on
sales, because 85% in the prime cost is the raw material. Therefore,
the tax base should be reduced. The jewelers also complained of the
customs broker institute introduced a few years ago and asked the
minister to cancel it, because they have to pay extra 18 thsd AMD for
each invoice. They also complained of the lack of the highly skilled
diamond-cutters.
As the owner of the "Murad Mirzoyan Diamond" company Murad Mirzoyan
said, diamond-cutters get so little for their work, that it is more
beneficial for them to drive a taxi. Therefore, there is shortage of
specialists at his company and other companies as well.
The minister said that the work is also good, and specialists should
be paid for their work as much as it allows them not to leave. As for
the VAT, he said that similar situation exists in many other branches
of economy where raw materials cost much. Many companies have been
using the imported raw materials, which is 70-80% in the prime cost of
a good, for instance, pharmacy, chemistry and other branches. However,
this is not the reason to reduce the VAT for them. The minister also
added that starting 1 January 2015, many customs regimes will change,
as Armenia will join the EEU. He drew attention at certification of
jewelry which may become a serious problem for development of the
branch and sale of the Armenian production at the external markets.
http://www.arminfo.am/index.cfm?objectid=5D94D410-7212-11E4-8C0F0EB7C0D21663
enhance labor efficiency
by Arthur Yernjakyan
Saturday, November 22, 09:39
At the Nov 21 discussion on the jewelry and lapidary issues, Armenian
Economy Minister Karen Chshmarityan advised the Armenian jewelers to
hire Indian diamond-cutters to enhance labor efficiency.
The minister made this proposal in response to the jewelers' numerous
complaints about the current legislation and the requests to set
sectoral preferences. The jewelers also complain of the
uncompetitiveness in the foreign market as compared with the Indian
lapidary companies, whose products cost cheaper.
The jewelers unanimously pointed out that the current tax and customs
regimes in Armenia do not contribute to development of the lapidary
sector. In particular, they asked the minister to cancel the VAT on
sales, because 85% in the prime cost is the raw material. Therefore,
the tax base should be reduced. The jewelers also complained of the
customs broker institute introduced a few years ago and asked the
minister to cancel it, because they have to pay extra 18 thsd AMD for
each invoice. They also complained of the lack of the highly skilled
diamond-cutters.
As the owner of the "Murad Mirzoyan Diamond" company Murad Mirzoyan
said, diamond-cutters get so little for their work, that it is more
beneficial for them to drive a taxi. Therefore, there is shortage of
specialists at his company and other companies as well.
The minister said that the work is also good, and specialists should
be paid for their work as much as it allows them not to leave. As for
the VAT, he said that similar situation exists in many other branches
of economy where raw materials cost much. Many companies have been
using the imported raw materials, which is 70-80% in the prime cost of
a good, for instance, pharmacy, chemistry and other branches. However,
this is not the reason to reduce the VAT for them. The minister also
added that starting 1 January 2015, many customs regimes will change,
as Armenia will join the EEU. He drew attention at certification of
jewelry which may become a serious problem for development of the
branch and sale of the Armenian production at the external markets.
http://www.arminfo.am/index.cfm?objectid=5D94D410-7212-11E4-8C0F0EB7C0D21663