The government announced on November 30th that the “temporary” import of “classical” cars is no longer effective. The decision states that instead of importing and registering these cars in accordance with Armenian regulations, they are being imported and registered in other countries within the EAEU (including Georgia) and then imported and re-registered in Armenia through the “temporary” import process. Currently, there are approximately 9,000 cars operating in Armenia under this status, resulting in no taxes being paid to the state budget. Instead, taxes are being filled in the state budgets of other countries for these vehicles.

A proposal has been made to allow registered cars in Armenia to be temporarily imported for a fee, with special transit documents issued, which would be returned upon re-export. This measure aims to render the temporary import of cars unsuccessful. However, this restriction does not apply to foreign nationals crossing Armenia with their personal cars for tourist or business purposes.

This decision by the government raises concerns over the loss of tax revenue for Armenia, as taxes such as customs duties, value-added tax, environmental tax, and property tax are not being paid for these vehicles. The reliance on the “temporary” import loophole has allowed individuals to avoid contributing to the state budget, while other countries benefit from the taxes paid for these cars.

By implementing stricter regulations and mandating the temporary import fee, the government hopes to address this issue and ensure that taxes owed to the state budget are paid. This move also aligns with efforts to promote fairness and equal treatment for all citizens, as registered cars in Armenia would have the option to be temporarily imported, while foreign nationals would be allowed to cross the country with their personal cars.

It remains to be seen how this decision will impact the automotive industry in Armenia and whether there will be any pushback from individuals who have been utilizing the temporary import loophole. As the government continues to monitor and regulate this issue, it is expected that the state budget will see an increase in tax revenue, which can be allocated towards various public services and infrastructure development.