Executive director of the Union of Information Technology Enterprises (UITE) Karen Vardanyan believes the operation of free economic zones in Armenia should be considered not independently but rather in a context of universal information entrepreneurship development.

“An atmosphere for joint activities should be created, to provide for exchange of information,” he said during the discussion on “Prospects of creation free economic zones (FEZ) in Armenia and their potential impact on IT industry” on March 21 in Yerevan.

As to the Law on FEZ, Vardanyan highlighted the importance of prompt announcement of “rules” on these territories by FEZ organizer, which will stir interest of foreign investors, as well as local IT companies.

Vardanyan cited the example of Turkey with its three main groups of FEZ. First one comprises technoparks, mostly located on historic Armenian territories in Erzeroum, Trapizon, etc. “These companies are VAT-exempted by 2024, while the employees are exempted from income tax,” he informed.

Second category includes production FEZ enjoying a 50% cut on taxes. The third group includes the customs area similar to the one planned at Zvartnots airport.

On June 21, 2011 Armenian President Serzh Sargsyan signed the “law on free economic zones” aimed at settlement of export problems and creation of favorable conditions for export-oriented enterprises.

Coming years envisage formation of 2-3 free economic zones in agro and industrial fields at Zvartnots Airport and Mars plant respectively, with negotiations currently in progress with jewellers.