The flaws in the customs legislation of the Republic of Armenia slow
down the steady development of the Sevan sugar factory. According to
factory owner Armen Arakelyan, the Armenian customs officials
levy a 10% customs tax on the sugar imported from Cuba, as well as on
sold products. As a result, the price of sugar goes up and this has a
negative effect on sales.
”This is injustice. As if paying a value added tax(VAT) wasn’t enough,
now we also pay a customs tax which doubles our taxes. The customs tax
workers are not the ones to blame because they are just doing what the
legislation states. Changes must be made to the present customs
legislation. We have already presented our suggestions to the
government of the Republic of Armenia.”
The Sevan sugar factory has rented approximately 400 hectors of arable
land for sugar beets. The crops received in the 2004 harvest year are
more than the year before due to the rearmament of the factory and the
alteration of crops. All products of the factory are consumed in the
domestic market. Armen Arakelyan adds that the sugar produced in his
factory is at the 4-5% level in the domestic market.