Economy should not be the captive of tax legislation – SRC Chairman
YEREVAN, JULY 13, ARMENPRESS. The Armenian government is going to submit a package of reforms of the Tax Code to the public in September. The State Revenue Committee will present proposals, but the finance ministry will be the one that will move forward the changes, SRC Chairman Davit Ananyan told reporters, Armenpress reports.
“We should make changes in the Tax Code in order not to cause problems to the economic entities from the right perspective. In particular, the capital and revenues should be taxed less, and the consumption – more. If we reduce the tax burden on the capital and revenues, there will be an impetus. As long as we have not reduced them, we are ensuring revenues only with administration”, he said.
He stated that the international structures have an adequate attitude towards that decision as they see Armenia’s efforts to move forward. “The international structures are thinking about the budget entries, whether our country will be able to serve the expenditures it assumed. Here the most important is the government’s opinion”, Davit Ananyan said.
As for the global and revolutionary changes in the Tax Code, the SRC Chairman said they are not expected in September, but discussions on this path have already launched, and after a certain period Armenia will have another tax system.
“Now we have to improve our system so that the economy will not be the captive of the Tax legislation. We want more taxes to be collected by the tax obligations formed as a result of economic growth, but not by the administration tools. It’s a very expensive pleasure for the state”, the SRC Chairman said.
He stated that the impact of reduction of tax rates on the tax entries is also calculated, several scenarios have been developed. Davit Ananyan stated that in case of each scenario the budget losses should be compensated by other means – by increasing indirect taxes or tax burden on some consumption, cutting privileges and etc.
Edited and translated by Aneta Harutyunyan