IMF representatives considers the critics of new Armenian Tax Code unfair

ArmInfo. "The adoption of new Tax Code is one of  main achievements of Armenian Government during recent years," Teresa Daban Sanchez, the IMF representative to Armenia stated on April 12 in  Yerevan.  According  to  IMF representative , Armenia sends a clear message to the global community in respect to tax reforms held in the country.

Except the message to the world,according to Daban Sanchez, the tax reforms were quite necessary for Armenia - firs of all, in a form of joint document regulating the tax sector, as it is accepted  in many developed countries. Different legal documents that tax officers have been ruled by in the past, had many contradictions. Such situation had generated not only obstacles for fair taxpayers, but also a promotional field for illegal activities," she stated.

At the same time, beside having a goal to create a joint  legal document conforming to all the international standards, the adoption of Tax Code in Armenia was aimed at increase of tax rates and to expand the tax base, particularly in respect to  the excise tax base.  Another modification is the dividends taxation.  All this is really important, because  many people do not want to read the Code comprising over 100 pages. It is very easy to criticize, but it is useful to read before sharing critics,"  the IMF representative mentioned.  To recall, Armenian National Assembly passed the second reading of  the draft new Tax Code with 79 votes "for," 24 votes "against," and 1  "abstention" on September 29.  The experts and business community criticized the new Tax Code. One of the reasons of urgent adoption of  the document was IMF's requirement related to providing regular  assistance to the country amounted to $130 mln.  The tax based incomes  estimated in the Draft Budget 2017  at AMD 1 trln 135 bln are  justified with the expected 5 % GDP growth and will not generate any  stricter conditions for business, Vardan Aramyan, the Minister  of Finance stated answering ArmInfo question.

As Minister ensured, already next year any unjustified intervening to business activities will be cancelled, as well as unjustified taxation. And the tax load should be increased for those who wok "in the shadow" and do not observe the law. In this context  the expectations in respect to Draft Budget, which   are higher than those for this year will not affect business conditions.