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YEREVAN, FEBRUARY 18, ARMENPRESS. The draft tax code with 700 pages is in the phase of public discussions in the frames of the Public Council. Teresa Daban Sanchez, IMF Resident Representative in Armenia, told about this on February 18, during a conference headlined “Favorable environment for sustainable enterprises”. She informed that the Government has expressed readiness to submit the draft to the National Assembly before the end of March. It is foreseen to be adopted in 2017 and enter into force in 2018.
Speaking about the necessity of the tax code, the official noted that in case the elaboration and exercise of the tax code is conducted properly, it can help to significantly increase the index of tax collection up to 2.5% of GDP in the medium term. “The tax code will be an attempt to increase tax revenues, ensure stable budget and to give the country an opportunity to make investments in infrastructures”, Teresa Daban Sanchez said, adding that the focus of tax revenues will be transferred from production to the sphere of service, aiming to foster entrepreneurial activity and long-term economic growth.
In her words, the new tax code will be directed at reinforcement of justice and fairness, creation of rules visible and transparent for everyone and elaboration of mechanisms to protect the vulnerable segments. “In order to ease the tax discipline the system must become simple and predictable. The aim is to increase value added tax, which covers a narrow range of business activities. The aim is to broaden this range, including some more spheres, such as agriculture, health care, education”. The IMF official said, adding that another aim is to decrease income taxes, making the system in line with international standards.