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Official News

Thursday, 12 June 2014

Government takes unprecedented step in support of small and medium-sized enterprises










A Cabinet sitting was held today, chaired by Prime Minister Hovik Abrahamyan.

The government approved a set of draft amendments to the law on turnover tax and six other legislative acts to provide a more favorable tax environment for the SMEs engaged in trading activities and family businesses.

The amendments envisage lowering of turnover tax to 1 percent from the currently applicable 3.5 percent. Family businesses will enjoy preferential terms: their entrepreneurial activity will be completely tax-exempt.

Prime Minister Hovik Abrahamyan noted in this connection, “By granting numerous privileges to small and medium-sized enterprises, we will try to bring larger businesses into the field of taxation. In addition, we expect to increase budget revenue with more streamlined documentation. The Ministry of Finance should be very consistent so that we could achieve the proposed target, namely that the major business is brought into the field of taxation and the SMEs should not be looked upon as taxpayers. This is our idea, and I think we will succeed, if we are consistent.”

Together with AYB Educational Foundation the government has launched the “National Center for Educational Excellence” Foundation, establishing that the Ministry of Education and Science shall be the authorized public agency to act on behalf of the Republic of Armenia.

The Education Development Program for 2011-2015 provides that similar centers are a must for speeding up the reform and making it efficacious. To this end, the best of our specialists need to be involved in the system, international experience has to be applied, incentives should be provided to best-performing teachers, the national certification program ought to be developed and so on.

In tune with Article 70 of the Constitution of the Republic of Armenia, the government suggested convening an extraordinary National Assembly session on June 18, 2014, at 12:00 to discuss a number of pressing and urgent issues.

The government allowed the extension of the temporary import customs regime for the Armenia branch of “Hormigones in morteros serano S.Zh.” till June 12, 2016. The branch is the sub-contractor of Corsan - Corviam Construccion JSC, which supplies high-quality cement for the North-South Road Corridor project. By renewing the application of the temporary import customs regime for machinery imported under the project the government provides the necessary framework for work continuity and efficiency.

Another decision was approved to complement the budget of the North-South Road Corridor Investment Program (Tranche 2) Ashtarak-Talin highway land acquisition and resettlement program. To this end, the government provided the PIO SNCO about AMD 968 million from its reserve fund.

A number of facilities along the 220 kV high-voltage transmission path corridor will have to be alienated to ensure effective implementation of the Power Supply Reliability Program under the loan agreement signed between the Republic of Armenia and the International Bank for Reconstruction and Development three years ago.

The decision makes it possible to study the property subject for alienation before the acknowledgement of prevailing and exclusive public interest. Compensation will be provided from the proceeds of the loan.
 

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