The Ministry of Finance of Armenia has completed a study on revising the taxation system for electric vehicles. According to the Armenian news outlet CivilNet, the new proposals aim to create a fairer tax calculation mechanism and are currently under discussion.
The existing taxation system, based on engine power measured in horsepower, has drawn criticism from electric vehicle owners. As Finance Minister Vahe Hovhannisyan noted in October 2024, some electric vehicle models have extremely high power ratings, leading to disproportionately high tax burdens.
In 2024, the Armenian government took steps to encourage the use of electric vehicles by exempting EV imports from customs duties. Approximately 8,000 vehicle owners took advantage of this benefit. For 2025, a new quota system has been introduced: 5,000 permits will be allocated to private individuals, and 3,000 to authorized dealers offering service and maintenance.
According to the Ministry of Finance, the final proposals for the new taxation system will be presented as a legislative initiative once discussions with relevant stakeholders are completed.
