Customs revenue drops 15% in 2024 due to import fall

PanARMENIAN.Net - Armenia’s customs authorities collected approximately 15% less in taxes and duties in 2024 compared to the previous year, State Revenue Committee (SRC) Chairman Eduard Hakobyan reported during a parliamentary session on the execution of the 2023 state budget.

In total, 2.391 trillion drams in taxes and duties were collected in 2024—7.6% more than in 2023. While tax revenue grew by about 11%, customs revenue saw a 15% decline, according to Sputnik Armenia.

Hakobyan said the customs shortfall stemmed from a sharp drop in vehicle and tobacco imports, which in turn reduced related customs duties.

He noted that in 2023, vehicle imports nearly doubled compared to 2022, creating a high base year.

In 2024, the decline was mainly due to two factors: first, from October 1, Russia raised its vehicle scrappage fee from 70% to 85%, with further increases planned through 2030; second, Georgia implemented certain restrictive measures, though Hakobyan did not specify what they were.

Data showed that value-added tax (VAT) revenue fell by 1.5% in 2024, totaling 755.9 billion drams. Specifically, VAT from imported goods dropped by 15.8%, or roughly 81.8 billion drams. Meanwhile, VAT collected from domestic sales rose by 28.2%, or about 70.4 billion drams.

According to the Statistical Committee, tobacco imports fell by around $13.7 million or 30% in 2024, while passenger vehicle imports dropped by $798 million—a roughly 60% decline from 2023.

Economy Minister Gevorg Papoyan previously stated that despite a 57% decline in exports in the first 4–5 months of the year, foreign trade rose significantly and the economy grew by 5.2%.