An economic instruments framework is in place in Armenia under the Law on Environmentally-related and Natural Resource Use Charges and respective regulations.This presentation looks at the use of taxes on environmentally harmful products in Armenia. It was delivered at the meeting on "Economic instruments for greener products in the EU's Eastern Partnership countries" (EaP GREEN).

1. USE OF ENVIRONMENTALLY-
RELATED TAXES ON
ENVIRONMENTALLY-HARMFUL
PRODUCTS IN ARMENIA
Kh. Hakobyan
Ministry of Nature Protection
of the Republic of Armenia
Paris, 2014

2. Economic instruments framework is in place in
Armenia under the Law on Environmentally-Related
and Natural Resource Use Charges and respective
regulations, which aims to:
 reduce adverse environmental impact
 ensure efficient/sustainable use of natural resources
 attract environmental investment
 replenish state budget

3. • The economic instruments framework increased revenues
of the state budget and in some cases reduced the
environmental pollution load.
• Within the framework of establishment and strengthening
of mechanisms to raise and allocate funds to achieve
environmental objectives, Armenia has very effective
economic instruments, including environmentally-related
and natural resource use charges.
• Over the past 15 years, proceeds from the charges
increased almost 55-fold, of which in 2013, about AMD
32.9 bn was collected, which is equivalent to USD 80.0
mln or EUR 60.0 mln.

4. Law of the Republic of Armenia on Environmental
and Natural Resource Use Charges provides for
the following types of charges:
1.Natural resource use charges:
• Water use fee
• Fee for extracted mineral resources
• Fee for use of bioresources
• Royalty for extracted metal mineral resources and sale of
products obtained as a result of their processing

5. 2. Environmentally-related charges
• Environmental pollution charges (for air
emissions and discharges into waters)
• Charges for disposal of industrial and municipal
waste
• Charges for environmentally-harmful products

6. Enironmentally-related and natural resource use charges as a
share of GDP, percent

7. Dynamics for state budget revenue from enironmentally-related and natural
resource use charges, 2006-2013, in billions of AMD
Natural resource use charges
Environmentally-related charges
Collected, total

8. Effective 1 January 1999, charges for
domestic and imported environmentally-
harmful products were introduced (charge
rates were increased in the same year).
Product-related charges – designed as a
source of revenue rather than as incentive
instruments – currently cover 29 product
categories, but the list of product categories
subject to charges has changed since
1999.

9. Environmentally-related charges for air emissions from mobile and stationary sources
Environmentally-related charges for production and import of environmentally-
harmful products
Environmentally-related charges for discharges into water bodies
Environmentally-related charges for disposal of industrial and municipal waste
Breakdown of Environmentally-Related Charges in 2013

10. Dynamics for state budget revenue from environmentally-
related charges for production and import of environmentally-
harmful products, in millions of AMD

11. Charges for use of environmentally harmful products, % of price
Item Rate
Imported Produced and sold in
Armenia
Mineral oils, oil and oil products, bitumen and
asphalt
2.0 2.0
Electroinsulating oils, used oil products 3.0 3.0
Freons 2.0 2.0
Halons 2.0 2.0
Printing ink 3.0 3.0
Detergents 0.5 0.5
Film 0.8 0.8
Brake fluids 2.0 2.0
Antifreeze fluids 2.0 2.0

12. Plastic products used to package and transport goods (tanks,
containers, etc.)
2.0 2.0
Tyres 1.0 1.0
Rubber air chambers 1.0 1.0
Products made of asbestos, friction substances 3.0 3.0
Glass fibre 0.8 0.8
Lead and lead products 3.0 3.0
Electrodes 1.5 1.5
Motor oil or fuel filters 1.0 1.0
Primary batteries 1.5 1.5
Lead batteries 3.0 3.0
Nickel-cadmium batteries 2.0 2.0
Battery parts 1.5 1.5
Electrolytic condensers 3.0 3.0
Light bulbs with thermal cathodes 3.0 3.0
Mercury vapour bulbs 3.0 3.0
Motor vehicles 5 to 10 years old 2,0 x
Motor vehicles 10 to 15 years old 10.0 x
Motor vehicles 15 or more years old 20.0 x

13. THANK YOU