The Armenian government has decided to extend the VAT and import duty exemption on electric vehicles for another year. This was announced by Minister of Economy Gevorg Papoyan on November 26 at a meeting of the Parliamentary Commission on Economic Affairs during the discussion of amendments to the Tax Code. The current benefit, introduced in 2019, was scheduled to end on January 1, 2026.

According to Papoyan, the decision to extend the VAT and duty exemption was made due to the positive results of the benefit's application: increased demand and expanded imports of environmentally friendly transport. The new end date for the regime is December 31, 2026.

The Minister noted that electric vehicles imported from third countries are also exempt from duties within the EAEU. Armenia's quota was 7,000 vehicles in 2022 and has been increased to 8,000 vehicles for 2023-2025.

According to the State Revenue Committee, the benefits have led to a sharp increase in transport imports. This year, 3 electric buses and 14,888 cars have been imported into the country, which is 3,000 more than in the entire previous year. Also, 2,634 motorcycles and mopeds were imported. The benefit will apply to cars manufactured in 2024 and later.

After the discussion, the Parliamentary Commission gave the bill a positive conclusion.