Thursday, 15 September 2016
PM instructs to reduce tariffs for vulnerable groups as much as possible
Prime Minister Karen Karapetyan chaired today a regular government meeting for the first time after assuming the post of Prime Minister.
Before proceeding to the agenda, the Prime Minister made a statement: “Firstly, the fight against corruption is being much discussed as it is of great public interest. We keep working in this direction; we have set up new commissions to coordinate it. But right now, I want to give the following assignment to the State Revenue Committee: first of all, our agencies should abide by and comply with their functions. This means they must ensure unconditional fulfillment of tax regulations by those not disciplined major manufacturers and importers perceived as privileged entities.
Secondly, tax audits should be carried out exclusively in risky enterprises; small and medium enterprises should be addressed in extreme cases. Customs officers’ subjective behavior should be ruled out to ensure maximum transparency.
The Staff will have to draft a more detailed instruction. At the same time, Mr. Hovsepyan, you need to avoid creating hindrances to business. Paperwork and checks should not interfere with their daily activities.
As far as the social component is concerned, I suggest that the Public Services Regulatory Commission, the Minister of Energy and Natural Resources, the Minister of Labor and Social Affairs should discuss and submit recommendations on the revision of gas and electricity tariff policy.
I mean that tariffs need to be reduced for vulnerable groups at the expense of other consumers. At the same time, tariffs should stimulate business, especially agriculture and processing industries.
There will be a relevant directive formulated with clearly specified deadlines. All this must be done not at the expense of the budget, but instead at the expense of those economic operators which are providing these services.”
The meeting discussed the draft law On Making Amendments to the RA Law on Local Duties and Payments, which was approved by the government. The bill is meant to provide favorable conditions for small and medium businesses engaged in the tertiary sector. The reference note says that the business area as expressed in square meters should be considered as a criterion for defining the rate of local taxes and duties.
The Government decided that Nanman LLC shall be exempt of import duties for any such equipment, constituent parts and components, raw materials and other inputs as may be imported under its investment program implemented in the priority sector.
Nanman LLC is planning to import Denim jeans fabric from China for business purposes, which according to the company is not produced in EAEU-member countries. The privilege will help implement new investment projects and as a result, create new jobs, attract investment, promote exports and domestic production.
Another decision was passed stating that Shant LLC will be granted a 3-year VAT extension for goods and equipment imported under its investment program.
Commenting on today’s decisions, the Prime Minister noted that benefits and privileges should be provided in accordance with clear-cut rules aimed at facilitating the process. Reiterating the assignment given to the State Revenue Committee, Karen Karapetyan pointed out that as a matter of fact, it is not a new recommendation: simply the SRC is supposed to exercise its functions.
The Government established a procedure to follow in providing financial assistance for asylum seekers to meet their basic subsistence needs if it proves to be impossible to house them in a temporary accommodation center. The decision states that applicants shall be eligible for an amount of 20.000 drams, while their family members will get 15,000 drams each.
