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Official News

Thursday, 2 December 2010

FY2011 State budget bill amendments approved



Before proceeding to the agenda, the Prime Minister gave a series of assignments to the heads of State agencies (the Prime Minister’s statement is provided under a separate heading).

The Government approved the draft protocol on amendments to the FY 2011 State budget bill. Note that some 600 proposals were submitted on the part of parliamentary standing commissions and factions, one third of which have been accepted.

The finalized version of the FY 2011 State budget bill was approved and will be submitted to the National Assembly in the manner established by law.

Endorsing the concept of high-mountain sports center to be founded on the shore of Lake Sevan, the Executive instructed the Minister of Economy to prepare a business program within a six-month time.

The meeting discussed and approved as follows:

- The concept of a pilot program on introduction of tele-therapy in Armenia;
- A package of amendments to the following codes and laws of the Republic of Armenia: the code on administrative breaches, the law on restrictions to tobacco sales, consumption and use, the law on organization and conduct of checks, the labor code.

The proposed amendments seek to reduce incidences of tobacco-caused diseases and improve the population’s health status, as a whole.

The Government declined a package of amendments to the law on VAT, initiated by a group MPs and envisaging privileges for some types of economic activity, considering that the specified areas of activity stemmed from the sphere of major business rather than that of small and medium-size enterprise.

In this connection, the head of government stated as follows: “The question is of those companies operating in the real estate market. They undergo specific licensing procedures to get authorization for market operations. Now, they have applied for VAT exemption which is unacceptable to us as they are deemed to carry out intellectual activity which is subject to VAT coverage. In general, we should avoid creating such VAT heavens in Armenia as may give refuge to those entities capable of undergoing the simple procedure of VAT registration. This is why we deem it inexpedient to take this type of activity off the list of VAT record.”

All the approved drafts and the cabinet findings will be forwarded to the National Assembly in the manner established by law.

The meeting discussed and passed decisions concerning some 50 items altogether.
 

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