Friday, September 2 2016 19:31

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.