ArmInfo. The Ministry of Finance of Armenia initiated discussions on changes in the tax legislation of the country. The head of the department Atom Janjughazyan stated at the National Assembly on June 13 during the presentation of the report on the implementation of the state budget in 2017.
As he said, now there was a necessity for reduction of the tax legislation in conformity with realities. In particular, it is about reducing the rates of direct taxes, but this does not mean a reduction in the share of taxes in the country's GDP. "This is the right way," the minister said, adding that this measure will help to activate the economy and attract additional investments. At the same time, Atom Janjughazyan urged not to rush things until the discussions are over and a corresponding decision is made. Moreover, the reduction in tax rates may have the opposite effect, as today direct taxes are often hidden, and if the rates go down, then the tax base may rise.
Nevertheless, two days earlier, the current minister and recently retired colleague Vardan Aramyan, in an interview with the correspondent of the Armenian National Congress, ArmInfo believes that the beginning of 2019 is the most likely time for review, for example, of income tax rates. He said that in the context of clarifying the country's tax policy in July, a technical assistance group of the International Monetary Fund (IMF) will arrive in Armenia. According to the ex-head of the Armenian Ministry of Finance, representatives of the IMF in the framework of promoting economic growth of the RA will once again study, "rethink" the tax policy of the republic. It was with the technical assistance of the IMF that Armenia developed the Tax Code, and also revised the country's fiscal rules. In the course of the visit, as Aramyan pointed out, within the framework of fine-tuning the tax policy in the medium and long term, the parties will also touch on the possibility of revising the income tax and turnover tax in Armenia.
The work on the "rethinking" of the Armenian Tax Code, adopted not so long ago - in September 2016, will last at least 3-4 months. The main vector of changes, according to Aramyan, will be directed towards increasing indirect taxes (VAT, excise tax) and reducing direct (labor and capital). In this context, according to Aramyan, the most likely period for reviewing the rates of income tax falls at the beginning of next year.