May 21, 2002 - 23:29 AMT
ARMENIAN PARLIAMENT APPROVED GOVERNMENT'S INITIATIVE ON GRANTING TAX CONCESSIONS TO ARGENTINEAN BUSINESSMAN EDUARDO ERNEKIAN
Armenian National Assembly has approved the government's package of bills for granting tax concessions and customs facilities to Argentinean businessman Eduardo Ernekian, who the "Zvartnots" Yerevan international airport will be transferred to for concession management for 30 years. Armenian justice minister David Arutyunian introducing the package of documents noted the initiative would result in additional profit for the investor and would secure the capital return. Four bills are included in the package of the government initiative. So, it is suggested to grant the concessionaire the right to be engaged in any licensed activities. Besides granting of the additional licenses, the right to transfer the license to other companies in the airport's territory is guaranteed. It is planned to propose amendments for the law on gambling-houses and games with winnings as well. According to the previous law, a casino could be opened at 50-km straight distance from the administrative limits of Yerevan and at 10-km straight distance from the regional centers' administrative limits. According to the new law, it is proposed to decrease the limitation to 10 km from Yerevan and 3 km from the regional centers. The minister did not make secret of the fact that this was done in order to let Ernekian to open gambling-houses in the airport's territory. Besides, the government suggested adopting amendments in the customs code. The amendments will let open duty-free shops in the territory of the airport and create free trade area in Armenia for the first time. Arutyunian noted the free trade area would mean the creation of a special area without customs supervisions, customs duty payment and value added tax. The minister noted the typical activities for such areas are, for example, computer assembling, agricultural product processing, clothes production, medicine packaging and other kinds of activities. In addition, the government has proposed another legislative initiative, according to which, any company producing 90 % of products for export will be exempt from taxes on profit. Arutyunian thinks this will let draw investments to the airport's free trade zone.