ArmInfo. Armenia does not treat the tax reforms seriously enough. As a result, the draft Code adopted by the Armenian Parliament in the first reading will seriously hinder the country's economic development if adopted in the final reading, Chairman of the Board of Directors of the American Chamber of Commerce in Armenia (AmCham), well-known economist Tigran Jrbashyan told reporters.
Jrbashyan said that the business representatives are gravely concerned about the document prepared by the Government. He thinks the adoption of the Tax Code may reduce the consumer market, the domestic and foreign investments, as well as cause further outflow of skilled personnel and growth of corruption risks. "Today we have to tell the public that we already have serious problems for business due to the new Tax Code of Armenia, which should be revised by all means," Jrbashyan said.
He recalled that when the conceptual provisions of the future tax code were being elaborated, the members of the business associations of Armenia came out with proposals which were reflected in the Tax Code Concept. But having studied the draft code approved by the Government, the business associations found out that the code includes provisions that do not only meet the Concept but also run counter to many provisions of the draft, which was initially discussed and approved by the Public Council.
Jrbashyan expressed hope that the Code will be revised with due regard for the conceptual provisions before the second reading. The matter concerns the provisions, which are meant to attract direct foreign investments, reequip and modernize the national economy, promote export, enhance the competitiveness of national economy in the region and in the EEU, as well as to ensure long-term and sustainable economic growth. "The document will be adopted, but not in its current form," he said. The expert thinks the next few months in the economic life of the country will be very active. "I hope the qualitatively new legislative document will be submitted in early September and that it will satisfy everyone," he said, figuratively adding that either Armenia should kill the hen and receive an up-to-the-minute fiscal benefit or it should create conditions for the hen to be healthy and to lay eggs for the welfare of the economy.
On June 15, the National Assembly of Armenia adopted in the first reading the new Tax Code of Armenia with 68 pros, 21 cons and 18 abstentions. All the parties, except the ruling Republican Party of Armenia, object to the new Tax Code. The second reading is scheduled for autumn 2016.