Thursday, 8 October 2015
Package of Draft Laws on Tax Code Approved
A regular Cabinet meeting was held today, chaired by Prime Minister Hovik Abrahamyan.
The Government approved a package of draft laws on the Tax Code of the Republic of Armenia to streamline relations applicable to taxes and Tax Code-specified fees, the tax system-governing principles, the concepts, types, rates, assessment methodologies of taxes and fees, as well as the scope of taxpayers, the terms and procedures of payment, inclusive of tax incentives.
Referring to the package of bills, Hovik Abrahamyan pointed out that it is the outcome of many months of hard work. “The Ministry of Finance has presented its vision for integrating and coordinating payroll taxes, accounting and billing practices, unifying a complex of principles. The Ministry thereby submitted the Tax Code, proceeding from the belief that tax incentives should be gradually reduced and substituted with targeted subsidies from the State budget.
This approach is welcome indeed, if targeted subsidies may be carried out effectively. I need a justification for the proposed refusal of tax benefits, namely that it actually improves rather than worsens the living standards of those citizens who need it.
I think that starting today this draft package should be widely discussed. Each economic entity should be properly informed about the bill before its passage, so that they can get answers to their concerns.
I hereby give a week’s time to the economy, agriculture, energy and natural resources, nature protection, education and science, healthcare ministers in order to submit a timetable of debates and consultations with the respective stakeholders. In addition, I urge all public agencies to actively discuss the draft Tax Code, which is a crucial instrument for our economic development.”
Note that the package is to be submitted to the National Assembly in 2016.
The meeting approved the concept of Armenia’s investment policy and a timetable of activities. The proposed measures are supposed to increase the level of investments, create a favorable business and investment environment, enhance transparency of the regulatory framework, introduce new investment mechanisms, which in turn will help create new jobs, strengthen the country’s competitive advantages and promote economic development.
The Government allocated over 66 million drams from its reserve fund to Tavush Marz administration to offset the losses incurred by hundreds of households in bordering villages due to last month’s hostilities initiated on the Azeri side. Hovik Abrahamyan noted that there is a presidential directive to solve this issue as quickly as possible.
AMD 25 million will be allocated to the Ministry of Urban Development and Tavush Marz administration from the Government’s reserve fund to build a new hanging bridge over the River Debed in Ptghavan community. Highlighting the decision, the Premier instructed to address the issue as quickly as possible.
From January 1, 2016, maternity allowances will be paid to non-working mothers. Accordingly, today’s Cabinet meeting approved a procedure for appointment and payment of maternity benefits to unemployed persons. Thus, the relevant relations will be streamlined ensuring the enforcement of the applicable law and the list of necessary documents. In this connection, the Prime Minister noted that the decision will cost an additional social burden of about 4 billion drams for the State budget in 2016.
In an effort to support the planned increase in the functionality and cross-country educational activities of Yerevan State Medical University after Mkhitar Heratsi, the Government decided to donate to the University for free use the building located at Mamikonyants - 60, where a student hostel will be built to accommodate the growing number of foreign students.
In conclusion, the meeting took note of the report submitted by Minister-Chief of Government Staff David Haroutunyan, referred to as “On compliance with the directives set out in the decision on approval of 2015 Government Action Plan and Priorities.” The report says that 55 of a total of 56 items, or 98.2 percent, had been implemented as of October 1, 2016.
