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Official News

Thursday, 12 April 2018

Karen Karapetyan: “Reference should be made to the reduction of income tax rates”

A Cabinet sitting was held today, chaired by Acting Prime Minister Karen Karapetyan. Before discussing the agenda, the Acting Prime Minister gave a number of instructions.

Karen Karapetyan’s first instruction was about the applicable rates of income tax and tax administration. “We stated a 7.5% economic growth and managed to overrun the fixed tax rates index in 2017. These developments enabled us to further strengthen the economic potential of our country, as well as implement such long-term and fundamental reforms as may have tangible benefits for the public at large. Preliminary estimates indicate that we have to take up the issue of reducing the income tax rate, since the reduced tax burden at the micro level will boost each employed citizen’s real income and, on the other hand, will enable employers to engage more qualified personnel with the same salary. At the same time, the easing of the tax burden should be coupled with the use of improved tax administration tools in order to avoid tax evasion and ensure budget system stability,” the Acting Prime Minister emphasized.

Karen Karapetyan instructed the Acting Minister of Economic Development and Investments, the Minister of Finance, and the State Revenue Committee Chairman to sum up the findings of preliminary studies within a 10-day period and after holding joint discussions on the matter, submit proposals on income tax rates reduction and improvement of tax administration tools.

The Acting Prime Minister issued other instructions concerning the new State support program in the field of agriculture, assessment of Marz administrations’ performance and central executive agencies’ activities, elimination of road signs discrepancies and energy-saving arrangements.

The meeting approved a package of technical standards for energy efficiency in new-built multi-apartment buildings and State-financed facilities (under construction or reconstruction). As a result, the legal framework governing buildings’ energy efficiency will provide for significant reduction in energy consumption and operating costs in compliance with the norms of modern conveniences. In addition, this will help address some environmental issues. In particular, emissions of harmful substances and greenhouse gases into the atmosphere will be substantially reduced.

Highlighting the decision, Karen Karapetyan noted that thereby the foundation of the new culture of energy efficiency in buildings is being laid.

The Government approved a program of trust management rights for High-Voltage Electric Networks CJSC, which will result in a safer and more reliable electricity transmission system.

The Executive adopted a number of decisions aimed at implementing the Nation-Army concept. Before presenting the agenda items, Acting Defense Minister Vigen Sargsyan noted that the fourth important step for implementing the Nation-Army concept is being made today. As Vigen Sargsyan pointed out, ideology was the first step, which stemmed from the public speeches and principled approaches voiced by the President of Armenia, as well as from the Government Program with reference to army building efforts and the strengthening of army-society relations.

“The second important step was of regulatory nature. We adopted two important laws, consolidating seven applicable laws and adapting them to the imperative of implementing fast and dynamic policies in tune with the requirements of the new constitution. The third important step was the modernization program, which is a highly practical roadmap for the development of our armed forces over the next seven years.

The fourth important step is being made today. I have brought along six sets of important decisions for discussion at today’s meeting. They tend to introduce specific programs for converting this ideology into practical schemes,” the acting Minister of Defense stated.

The meeting approved the Government’s legislative initiatives regarding the RA Code on Administrative Offenses and related laws, and the bill on amending the RA Criminal Procedure Code.

The Government decided to substitute the working day of April 30 with the Saturday of May 5.

Money will be allocated to the Ministry of Culture from the Government’s Reserve Fund with a view to organizing and holding the “Goris - CIS cultural capital in 2018” interstate program.

May 2020