IN 2007 GOVERNMENT TO PROVIDE EXPERIMENTAL SUBSIDIES TO 11
FARMS IN GEGHARKUNIK AND ARAGATSOTN MARZES
27-12-2006 16:32:00 | Armenia | Economy
YEREVAN, DECEMBER 27, NOYAN TAPAN. In 2007, the Armenian
government will provide experimental subsidies to farmers of 11
villages in Gegharkinik and Aragatsotn marzes: 35 thousand drams
(about 90 USD) will be provided for a hectare. The RA Minister
of Agriculture Davit Lokian said on December 27 at the press
conference to summarize this year's results that starting from
2008, this order of subsidizing will function in other marzes as
well.
According to D. Lokian, the draft law on state assistance
to the agricultural sphere has been developed by the ministry
and submitted to the government. According to the draft law,
the subsidizing of agriculture by the government should have a
constant character, and a policy of regulating agricultural
foodstuff prices should be conducted.
The minister noted that from 2009, farms will not pay VAT
if their turnover does not exceed 10 million drams. Thus, the
majority of farms - 85% will be exempt from VAT. D. Lokian added
that even big land owners, who will pay VAT, will not have any
problems: for example, a 10% tax will be collected from them
instead of the current 20% tax for a 50-ha land.