YEREVAN, November 21. /ARКА/. The Armenian Ministry of Finance is in the process of formulating a concept aimed at revising tax policy.
According to Finance Minister Vahe Hovhannisyan, discussions surrounding this concept are occurring in response to valid criticisms from businesses regarding the frequent alterations to tax legislation.
Among the proposed reforms, the minister emphasized the intention to link amendments to the Tax Code with the budgetary process, ensuring that all tax modifications are presented to parliament and subjected to public discourse as a consolidated package on an annual basis.
“We will identify the analytical discussions and actions that the government must undertake to suggest any modifications. I believe that this approach will enable us to address the primary criticism of tax policy, which relates to this issue,” he stated during the presentation of the World Bank’s “Country Economic News” report concerning Armenia.
Hovhannisyan remarked that the government has limited capacity to decrease the tax-to-GDP ratio, considering the substantial infrastructure and social expenditures on the agenda.
“Nevertheless, we do not harbor significant ambitions for an increase, as we recognize that raising taxes at this juncture, at least, is unlikely to enhance efficiency. We must allow businesses to retain more capital to sustain this momentum and encourage investment in productivity. We will also propose measures in this regard,” he added.
In this context, the Finance Minister announced that a draft law concerning accelerated depreciation will soon be introduced, enabling investors to depreciate capital investments at an expedited rate.
“This will result in additional funds remaining in the economy, allowing businesses with long-term objectives to benefit from improved conditions,” he clarified.-0-
