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Diana Ghazaryan

Government Grants Another Tax Break to Gagik Tsarukyan’s Company

The Armenian government today decided to grant yet another tax break to Multi Solar LLC, a company owned by MP and business tycoon Gagik Tsarukyan.

Proposed by Minister of Economic Development and Investments Souren Karayan, the tax break allows the company to import technological equipment and their components without paying import customs tax.

This is the second tax break the government has granted the company. On November 23, the government decided postponing VAT payment for goods imported from December 1, 2017 to December 31, 2018, for three years. 

Based on the documents retrieved from the Armenian State Register of Legal Entities, Multi Solar is a newly established company. It was founded on 13 September this year. Gagik Tsarukyan and Zareh Balasanyan are 50% stake owners. The same source says Balasanyan is a U.S. citizen, and this is Balasanyan's first company in Armenia.

According to the documents submitted to the government, the company will import 23 equipment items from China, worth 74 million drams, to be used to manufacture solar panels and install solar systems.

The company plans to invest some 967 million drams and create 49 new jobs, gradually increasing the number to 97 in a year.

The planned volume of production is worth 2.4 billion drams. 242.5 million worth is planned to be sold in Armenia, 727.5 million drams - in the EAEU member countries and the rest - in the U.S.

Granting tax breaks to officials and their children's companies seems to have become routine for the Armenian government.