ArmInfo. Chaired by Armenian Prime Minister Hovik Abrahamyan, the Armenian Government held discussions on the new draft Tax Code on Sept 2.
The press office of the Government has told ArmInfo that the sitting covered the proposals of the lawmakers, representatives of the civil society and international organizations. Hovik Abrahamyan instructed the responsible persons to sum up the results of the discussions and present the final results to the Government.
To note, on June 15, the Armenian National Assembly passed the first reading of the draft new Tax Code at an extraordinary meeting. Deputy Head of the State Revenue Committee Vakhtang Mirumyan said the bill looks to ensure long-term economic growth without focusing on short-term results. Import of industrial equipment and some types of raw materials from third countries will be charged VAT. The payments must be made to the taxation agencies until the 20th of the next month after import, and not to the customs services within 10 days after import as it was done previously. VAT will be refunded not only to exporters that paid to their vendors, but also to the businesspersons who invest in economy. They will be refunded for a period of 6 months to get time to use it. In addition, he said, VAT payment will be postponed for the industrial mechanisms and some raw materials necessary for the economy.
The businesspersons engaged in processing in Armenia and export from Armenia will not be charged VAT on the border as before. Vakhtang Mirumyan said the Government suggests VAT liberalization system that had been postponed for years. Such system will be applied to the profit tax too. The next provision refers to stabilization of budget revenues. Mirumyan said the excise taxes will be revised for 2017-2021. In particular, excise taxes on tobacco, vodka, and some types of fuel will be revised and brought in conformity with the Eurasian Economic Union (EEU) standards. Nevertheless, even in 2021 these taxes will be by 20% lower than in the other EEU countries, Mirumyan said.
He spotlighted the alternative methods of taxation saying that Armenia ranks the first in the world by distribution of the alternative taxation system, which distorts the system and demonstrates unfair approaches. The approaches that make 90% of business in Armenia impossible in the long-term outlook under the alternative system of taxation have been revised too. Small businesses will use the advantages provided by the system. The tax discipline will be improved and measures will be taken to apply the international system of assessment to ensure the transparency of the processes, a new quality of service and minimum communication of a customer and officer. Mirumyan said all the principles look to ensure stability and predictability of businesses. At the same time, he said, a tax on dividends will be introduced.