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Official News

Wednesday, 3 September 2014

Business environment improvement steps discussed with Prime Minister

Prime Minister Hovik Abrahamyan held a consultative meeting to discuss a number of activities as proposed by government agencies in a bid to improve the business environment achieve proportionate economic development and increase the level of economic activity in the country.

In particular, the meeting discussed possibilities and mechanisms for offering fiscal privileges to economic entities operating in border rural communities, reconsidering the threshold for VAT holidays applicable to imports under investment programs implemented by domestic and foreign investors, the possibility of subsidizing interest payments under mortgage loans contracted for the purchase of apartments directly from the developers with a view to boosting the construction sector in the economy and implement, along with the public sector, specific welfare policies in the area of housing, by making interest payments from the amounts due from the borrowers’ income tax liabilities.

To help those economic entities liable to VAT payments build up and effectively manage their working assets, the meeting looked at the possibility of gradual overhaul of the system of VAT transfers (designed to reduce the amount of VAT accruals).

It was also discussed the transition to a fully electronic system for issuing tax invoices and other accounting documents, which will significantly reduce the possibility of contact between the taxpayer and the tax authorities, at the same time providing the necessary documentation and reporting requirements.

The Prime Minister approved the proposed approaches, as a whole, and instructed to finalize them following discussions with the stakeholders and submit to the Government within shortest possible time.
 

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