Thursday, 30 March 2017
PM instructs managers to increase efficiency of bankruptcy procedure
A regular Cabinet meeting was held today, chaired by Prime Minister Karen Karapetyan. Before proceeding to the discussion of agenda items, the Premier gave a number of instructions.
Karen Karapetyan’s first instruction focused on the need for managers to improve efficiency in bankruptcy procedures.
”During meetings held in the provinces, a large number of complaints in connection with manager’ ineffective work in bankruptcy procedures was addressed to the Staff of Government. The complaints mainly bore on the delays in the examination of bankruptcy cases, and the low efficiency of the process of satisfying citizens’ legitimate claims, including the ones related to wage arrears. The problem is due to both practical failures and legislative shortfalls,” the Prime Minister noted, adding that it should be considered as a top priority since in practice the Government has no leverages to intervene in the process of bankruptcy and provide additional guarantees for protecting the rights of citizens.
Karen Karapetyan instructed the Minister of Justice of Armenia to study the problem and submit a proposal on addressing the aforementioned gaps within a three-month period. The Minister of Justice was also instructed to develop such preventive measures as should be taken in anticipation of bankruptcy.
The Prime Minister issued instructions aimed at providing State support to large families and young families in need of housing, heating etc, as well as streamlining the network of interstate and inland roads, the adjacent areas and so on.
Then the Minister of Justice delivered a report on the progress in implementation of Prime Minister’s instruction issued at the Cabinet sitting of February 26, 2017 concerning the adoption, amendment or supplementation of those laws and regulations stemming from constitutional changes.
The Government adopted a number of decisions aimed at improving the business environment. In this connection, Chairman of State Revenue Committee Vardan Harutyunyan advised that the second stage of tax and customs reform was submitted to the public last week.
“The business community welcomed it with great enthusiasm, and on your instructions, we have initiated the second round of work. Three drafts are being submitted to the Government for discussion and approval,” Mr Harutyunyan said.
The meeting established the criteria to use with regard to those taxpayers subject to refund for zero-rate VAT transactions, as well as a simplified procedure and the deadlines for crediting to the consolidated account the recoverable amounts of VAT paid for zero-rate taxable transactions based on applications of up to 20 million dram recoverable amounts.
In particular, the new arrangement provides that the zero-rate recoverable amounts of VAT up to 20 million drams shall be credited to the consolidated account and refunded during 2017 without inspections carried out by the tax authority within 4 working days instead of the prescribed 90 days.
The meeting next approved a set of amendments submitted by the State Revenue Committee on the Tax Code of the Republic of Armenia and on endorsing the list of those imported goods and commodities exempt of excise duty, which should be free of value added tax.
The bills seek to improve the investment environment for businesses. The bill suggests that value added tax should not be levied on all types of machinery, equipment and raw material imports.
At the same time, the bills propose to establish that the minimal depreciation period of imported or purchased fixed assets (whether under construction or under development) as part of those investment projects and business programs approved by the Government shall be one year at resident tax payer’s discretion. This will enable investors to significantly reduce the time needed for return of investment, which in turn will enhance our country’s investment attractiveness.
Karen Karapetyan highlighted the decision, noting that the Government should abide by this course of action and boldly go forward.
Free economic zone to be established in Syunik: the Government adopted a decision to that effect. According to the reference note, being a member of the Eurasian Economic Union, boasting a preferential trade regime with the EU and a common border with Iran, international ratings of attractive investment and business environment and a free economic zone bordering with Iran, Armenia can could be attractive in terms of hosting export-oriented enterprises and providing commercial and logistic opportunities due to its geographical location.
Stressing the importance of the free economic zone, Karen Karapetyan told Minister of Economic Development and Investment Suren Karayan to notify Russian, Kazakh, Belarus and Georgian partners that the platform is ready for the launch. “We are ready to provide the necessary conditions for economic entities of countries interested in cooperation with the Iranian side,” the Prime Minister said.
The Government approved the investment program for the priority area of land lease without providing competition to Access Infra Central Asia Limited. Support is thereby provided to the investment company, as well as for taking individual steps for implementation of renewable energy policies.
According to the decision, permission is provided for the lease of up to 1,250 hectares of community-owned land in Tsaghkunq, Ddmashen, Zovaber communities of Gegharkunik Marz, as well as in Meghradzor and Hrazdan communities of Kotayk Marz without a tender to the benefit of Access Infra Central Asia Limited, registered in the UAE, in order to ensure the implementation of a pilot program for electric power generation using renewable energy (wind).
According to minister of Energy Infrastructure and Natural Resources Ashot Manukyan, the planned capacity of wind power plants is up to 150 MW; the size of planned investment – USD 150 million.
