Jrbashyan says new tax code would become serious obstacle to economic development
17.06.2016,
14:05
Tigran Jrbashyan, the president of the American Chamber of Commerce in Armenia (AmCham), lashed out today at a government-drafted tax legislation, adopted with a vote of 68 to 21 and 18 abstentions by the National Assembly of Armenia in the first reading.
YEREVAN, June 17. /ARKA/. Tigran Jrbashyan, the president of the American Chamber of Commerce in Armenia (AmCham), lashed out today at a government-drafted tax legislation, adopted with a vote of 68 to 21 and 18 abstentions by the National Assembly of Armenia in the first reading despite strong objections from the opposition and even the ranks of the ruling Republican Party of Armenia, saying if approved in the final reading and enacted the new Tax Code would become a serious obstacle to economic development of the country.
Speaking at a public discussion of the new tax legislation, Jrbashyan said the main provisions of the Tax Code must be discussed again and changed to get a final version that would suit everyone.
"The document in its current form can not be adopted. There should be a package consensus on it embracing all types of taxes," he said.
According to the government, the new Tax Code, which calls for higher taxes on fuel, alcohol and tobacco is designed to improve the tax collection and boost state revenue.
The new Tax Code, if approved in the final reading, slated for autumn, would raise the income tax rates for workers earning 120,000 drams ($250) or more per month from 26 to 28 - 33 percent. Income tax rates for those who earn at least 2 million drams would be downed from 36 percent to 33 percent. Workers who earn less than 120,000 drams a month would have their income tax rates cut from 24.4 percent to 23 percent.
The head of the Union of Banks of Armenia Samvel Chzmachyan noted in turn that the new Tax Code makes Armenia less attractive for investors.
According to all participants in the discussion, the new Tax Code would reduce the market, trigger a new wave of brain drain and increase corruption risks.
Today’s discussion was attended by representatives of the American Chamber of Commerce in Armenia, the Union of Banks of Armenia, the Union of Information Technology Enterprises and other stakeholders. -0-
Speaking at a public discussion of the new tax legislation, Jrbashyan said the main provisions of the Tax Code must be discussed again and changed to get a final version that would suit everyone.
"The document in its current form can not be adopted. There should be a package consensus on it embracing all types of taxes," he said.
According to the government, the new Tax Code, which calls for higher taxes on fuel, alcohol and tobacco is designed to improve the tax collection and boost state revenue.
The new Tax Code, if approved in the final reading, slated for autumn, would raise the income tax rates for workers earning 120,000 drams ($250) or more per month from 26 to 28 - 33 percent. Income tax rates for those who earn at least 2 million drams would be downed from 36 percent to 33 percent. Workers who earn less than 120,000 drams a month would have their income tax rates cut from 24.4 percent to 23 percent.
The head of the Union of Banks of Armenia Samvel Chzmachyan noted in turn that the new Tax Code makes Armenia less attractive for investors.
According to all participants in the discussion, the new Tax Code would reduce the market, trigger a new wave of brain drain and increase corruption risks.
Today’s discussion was attended by representatives of the American Chamber of Commerce in Armenia, the Union of Banks of Armenia, the Union of Information Technology Enterprises and other stakeholders. -0-
