Armenian authorities want to revive leather industry

This issue was discussed at a meeting of the Presidium of the Commission on financial-economic and budgetary affairs of Public Council of the Republic of Armenia. Two enterprises can arrange the processing of 4000 tons of crust leather. The possibility of introduction of export customs duties in the amount of 150 thousand AMD (about $ 300) per 1 ton was discussed, given the fact that such measures in Russia, Belarus and Kazakhstan paid off. The authorities expect to provide around 300 people with work at the Yerevan tannery JSC "Kashi" and increase tax revenues to the budget due to the release expansion. The authorities estimate that the leather of local production will cost the Armenian shoemakers 58% cheaper than the imported ones. It is planned to make a network of 23 slaughterhouses in the country(now there are only 7). Now the most of rawhides collected are sold to Turkey without paying customs duties. The price is around 500 AMD for 1 kg (a little less than $ 1). According to the Director of the Yerevan tanning factory, the production of footwear in Armenia today is only 2-3% of the total production in the Soviet times (when it used to be 21 million pairs).

Source: Business Express