ArmInfo. The Armenian Ministry of Finance will soon submit a draft law on capital expenditure depreciation, as stated by Armenian Finance Minister Vahe Hovhannisyan during a discussion with Fabrizio Zarcone, Head of the World Bank (WB) Mission to Armenia, at an event marking the release of the first WB report, "Armenia's Economic Pulse: Fairer Markets for Inclusive Growth."
"The draft law will allow our investors to accelerate the depreciation of capital investments, which will leave additional funds in the economy to ensure that businesses with long-term plans have better conditions for development," he noted. Hovhannisyan reported that discussions are currently underway on a concept for Armenia's future tax policy, to be presented by the end of the year. "We don't have much flexibility in terms of reducing the tax-to-GDP ratio, given the importance of the state's infrastructure and social spending. Additionally, we have no ambitions for a significant increase, as we understand that raising taxes won't automatically lead to greater efficiency. We must leave more money for businesses to stimulate investment in productivity and maintain economic dynamism," the Minister said.
Regarding the activities of the Ministry of Finance, Hovhannisyan noted that work in recent years has been aimed at creating a fair environment. "I can't say whether we've achieved great success, but we have taken certain important steps," he noted. In this regard, the Minister noted that Armenia's business community has been complaining about frequent changes in tax regulations. A decision has been made to link the tax reform process with the budget process starting next year. "All amendments will be presented in one package once a year for public discussion and to the National Assembly. We will discuss our expenditure policy in parallel with our revenue policy," he said, adding that a specific procedure and deadline for submitting these amendments will be approved.
Hovhannisyan noted that there is often criticism about laws passing without proper consultation with representatives from various sectors. The department is working to address this issue.
