Parliamentary committee endorses bill allowing income tax contributions to NGOs, media and political parties

The Parliamentary Committee on Financial-Credit and Budgetary Affairs has endorsed a bill proposing amendments to the Tax Code, voting 5 in favor and 3 against. The bill proposes allowing citizens to support non-governmental organizations (NGOs), media outlets and political parties through contributions from their paid income tax.

Deputy Finance Minister Hamlet Sahakyan presented the bill at the committee meeting on November 11.

The proposal envisages including monetary donations made by citizens to these organizations among social expenditures. The scope of eligible beneficiaries, the criteria they must meet and the maximum contribution amounts are to be determined by a government decision.

According to Sahakyan, the tax authority will compile relevant lists based on information about the organizations. These lists will be available in the tax declaration system, and citizens will decide for themselves which organization to support.

The Deputy Minister clarified that the proposed criteria do not concern an assessment of the content of the organizations’ activities.

“No content-related criteria are envisaged for any area. I mentioned the criteria that are envisaged: two years of registration, no outstanding tax obligations, and submission of certain financial reports,” Sahakyan said.

According to him, the required financial information will relate, in particular, to revenues and expenditures.

During the discussion, lawmakers raised concerns about the selection of beneficiaries, the confidentiality of citizens’ political preferences and possible pressure in the financing process. The rapporteur emphasized that, under the proposed approach, organizations will be included in the system once they meet the established requirements, while the decision to provide funding will be made by the citizen.