Car Prices Expected to Increase by 4 to 5 Times; Poultry, Flour, Oil, Gold and Diamond Jewelry Will Also Rise

Over 37,000 cars were imported into Armenia, a member of the EAEU, from third countries in 2017, while in 2018, 65,000 cars were imported. This was stated by MP Mikael Melkumyan during a discussion on the current state of the Eurasian Economic Integration and key directions for increasing its efficiency, noting that starting from 2020, car customs duties will be based on engine power.

“This will lead to an increase in car prices by four to five times. Wouldn't it be appropriate for us to appeal to the EAEU and suggest that the customs duties for Armenia not rise for five years?” Melkumyan said. He also mentioned that the import tariff on poultry meat will be set at 25% in 2020, and later a unified customs duty of 80% will be established.

In response, Minister of Economic Development and Investments Tigran Khachatryan stated that this privileged period before the increase in customs duties already constitutes preferential conditions for Armenia.

Melkumyan noted that he is aware that there are only two product categories for which requests have been made to lower customs duties, one of which pertains to high-voltage power lines for supplying energy to Iran. He added that he has heard that other countries have requested reductions, but there is a passive stance from Armenia regarding the review of customs duties.

“We are expecting an increase in customs duties—poultry meat will increase to 25% in 2020, and later to 80%. The same applies to milk and cream, wheat will rise from 2% to 5%, sunflower oil, and so on.

We need to act quickly and raise these issues from now on,” he stated. Minister Khachatryan replied that there is a delicate balance to remember, as discussions are currently centered around a transitional period.