Nikol Pashinyan, the Prime Minister of Armenia, reported during a government meeting that it has been since the beginning of 2019, that the government initiated tax benefits in Armenia with other advantages for 25 companies, which in their turn pledged a total of $254 million investment.
The one instrument the government uses to boost investments is a 3-year VAT payment deferment and an exemption from customs duties.
Pashinyan said that in the first 5 months of 2018, only 11 projects pledging $35.3 million worth investments were approved. These companies were also obligated to create 502 jobs in 5 months. During the same period of 2019, the government already approved 25 projects, which are to make $254 million investment and create 2,379 jobs.
The Prime Minister noted that the figures mentioned above, as well as the current status of these projects, need to be analyzed in depth. In Pashinyan’s words, 90% or more of the companies fulfill their commitments, which creates no tangible risks.
An example, which Pashinyan referred to was Adamyan company. It was one of the accepted projects to receive benefits from the government to produce household appliances, which also included Adamyan TV sets.
Armenian Prime Minister
When the government provided the company with benefits, some mass media outlets claimed it was fake news and that no plant was built. Now, our citizens can buy Armenian-made TVs in stores."