The Armenian government has decided to extend the existing VAT exemption for electric vehicles by one year, citing its significant positive impact on the development of the sector. The proposal was presented by Economy Minister Gevorg Papoyan at a Cabinet meeting, Armenpress reports.
The current incentive, effective since 2019, exempts large, medium, and small buses, passenger cars, motorcycles, and mopeds with electric motors from value-added tax (VAT). Originally set to expire on January 1, 2026, the exemption will now be in effect until December 31, 2026.
According to Papoyan, the policy has greatly boosted electric vehicle imports. In 2023, Armenia imported 9,635 units—a 75% increase over 2022. In 2024, that figure grew to 11,793 units, marking a 22% rise over 2023. Compared to 2019, overall EV imports have risen by approximately 17.6 times.
He added that Armenia also continues to benefit from Customs Union Commission import duty exemptions, with an annual quota of 8,000 electric vehicles per year for 2023, 2024, and 2025.
From the start of 2024 until October 14, Armenia imported:
- 14,888 electric cars
- 3 electric buses
- 2,634 electric motorcycles and mopeds
These figures, Papoyan emphasized, further demonstrate the effectiveness of the tax exemptions in promoting electric transport.
