Armenian parliament passes controversial tax code in first reading
16.06.2016,
11:21
With a vote of 68 to 21 and 18 abstentions the National Assembly of Armenian passed on June 15 in the first reading a government-drafted tax legislation, despite strong objections from the opposition and even the ranks of the ruling Republican Party of Armenia.
YEREVAN, June 16. /ARKA/. With a vote of 68 to 21 and 18 abstentions the National Assembly of Armenian passed on June 15 in the first reading a government-drafted tax legislation, despite strong objections from the opposition and even the ranks of the ruling Republican Party of Armenia.
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 new Tax Code is expected to be enforced gradually within 3-5 years ‘to ensure smooth transition.’
According to opposition lawmakers, the new tax reforms would seriously hurt many businesses and encourage tax evasion.
The new tax legislation is also opposed by the coalition member, the Armenian Revolutionary Federation (Dashnaktsutyun). Armen Rustamyan, parliamentary head of Dashnaktsutyun, said the faction is working on a package of related documents and would submit them to the government’s consideration once they are ready. Dashnaktsutyun MPs refrained from voting on June 15. Rustamyan said they would back the new Tax Code only if their proposals are incorporated into it.
Hrant Bagratyan from the opposition Armenian National Congress argued that the adoption of the new tax legislation would force business people to shut all their businesses in the country.
"Changes to the document should be conceptual in nature. The voting will not allow making serious adjustments in the future,", Bagratyan said, adding that the proposed changes would increase the tax burden on businesses by 90 billion drams.
According to Heghine Bisharyan, the parliamentary leader of Orinats Yerkir party, the authorities should demonstrate political will to finalize the document, "since in its current form the tax legislation will lead to the collapse of the economy and trigger a new wave of out-migration".
Vartan Ayvazian, the chairman of the parliament committee on economic issues from the ruling party, said the government is open to amendments proposed by lawmakers and will hold a series of discussions -0-
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 new Tax Code is expected to be enforced gradually within 3-5 years ‘to ensure smooth transition.’
According to opposition lawmakers, the new tax reforms would seriously hurt many businesses and encourage tax evasion.
The new tax legislation is also opposed by the coalition member, the Armenian Revolutionary Federation (Dashnaktsutyun). Armen Rustamyan, parliamentary head of Dashnaktsutyun, said the faction is working on a package of related documents and would submit them to the government’s consideration once they are ready. Dashnaktsutyun MPs refrained from voting on June 15. Rustamyan said they would back the new Tax Code only if their proposals are incorporated into it.
Hrant Bagratyan from the opposition Armenian National Congress argued that the adoption of the new tax legislation would force business people to shut all their businesses in the country.
"Changes to the document should be conceptual in nature. The voting will not allow making serious adjustments in the future,", Bagratyan said, adding that the proposed changes would increase the tax burden on businesses by 90 billion drams.
According to Heghine Bisharyan, the parliamentary leader of Orinats Yerkir party, the authorities should demonstrate political will to finalize the document, "since in its current form the tax legislation will lead to the collapse of the economy and trigger a new wave of out-migration".
Vartan Ayvazian, the chairman of the parliament committee on economic issues from the ruling party, said the government is open to amendments proposed by lawmakers and will hold a series of discussions -0-
