ArmInfo. Drafting a new Tax Code in Armenia is a serious effort by the government and the public towards improvement of the living standards in the country. Teresa Daban Sanchez, IMF Resident Representative in Armenia, made such statement at a news conference organized by the Club of Economic Journalists and Kondard Adenauer Stiftung in Yerevan on May 11.
She said that amendments to the Tax Code of Armenia are of complex nature. After proclaiming independence, Armenia has approved a big number of various legislative acts that were submitted by various government agencies with the support of various donors. Finally, to optimize these processes, the legislative acts needed the so-called unification, as they were creating uncertainties to the economic entities and affecting the country, in general.
Stressing that the IMF came out as an adviser to the new option of the document, Teresa Daban Sanchez said the new Tax Code will help increasing tax collection, upgrading the transparency of the relations of the government and private sectors and the tax agencies. And, as she thinks, it will help bringing the taxation system of Armenia in conformity with international standards.
The IMF representative said the new document may undergo certain amendments in future, but she hopes it will be applicable in the mid-term outlook. She said new Code will give an opportunity to make the necessary expenses. Vahagn Hambardzoumyan, Chairman of the Association of the SME Accountants in Armenia, in turn, said 80% of the Association's proposals were taken into account when drafting the new Tax Code. He said a single taxation account will be created as part of the new Tax Code to settle the problem with accumulation of pre-payments.
To recall, the business sector accounts for only 6% of total tax revenues of the Armenian state budget, while SME account for 43% of GDP.