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GOVERNMENT-PROPOSED TAX PREFERENCES FOR LARGE EXPORTERS SLAMMED BY ARMENIAN OPPOSITION
YEREVAN, February 5. /ARKA/. On Thursday, the National Assembly
of Armenia discussed a government-proposed bill implying a tenfold
abatement of profit tax (to 2%) for large exporters from Armenia.
Deputy Finance Minister Vakhtang Mirumyan, presenting the bill to the
lawmakers, said it is aimed at attracting fresh foreign investment,
which should be used to boost Armenian exports.
He explained that the dramatic drop in income taxes is for companies,
which will have government-approved plan of actions to boost their
exports up to at least 50 billion drams, which should be reflected
in the companies' accounts in resident Armenian banks.
The preferences apply only to exported products, not those goods sold
in Armenia's territory.
According to him, the bill is aimed at attracting fresh foreign
investment, which should be used to boost Armenian exports. Mirumyan
described the proposed change as 'unprecedented.'
In his words, the two-percent tax would be an unprecedented incentive
for exporters.
"In fact, the government refuses tax revenues in order to stimulate
producers and promote creation of new jobs and economic growth,"
said Mirumyan.
He also said that the proposed change provides for special regulatory
measures to prevent attempts of companies to artificially reduce
their tax payments.
He said the change will not apply to Armenian mining companies.
According to him, no company in Armenia meets now this requirement,
'however, we are negotiating with some foreign investors that could
be attracted by the proposed change'.
The opposition factions, however, reacted angrily to the bill finding
the deputy minister's arguments not convincing.
Tevan Poghosyan, an MP from heritage opposition party, said the
profit tax abatement from 20% to 2% for large exporters will give
room for appearance of bogus companies that will enjoy this local
tax preference.
he said.
Another opposition MP, Khachatur Kokobelyan, leader of the Free
Democrats party, said it is unclear whom this reform targets.
He said nobody disputes the significance of large companies'
activities for Armenia's economy, but . Lawmakers from Armenian
Revolutionary Federation/ Dashnaktsutyun, Orinats Yerkir party and
the Armenian National Congress said they will vote against the bill
since it doesn't solve problems.
said Heghine
Bishryan, head of Orinats Yerkir faction. Remarkable is that even some
MPs from the ruling Republican Party of Armenia put the reasonability
of the bill into question.
In particular, Vahram Baghdasaryan, head of the party's faction in the
parliament, said that support for big exporters should not harm others.
he said.
ôhe bill will be put to vote on February 23. ($1- AMD
476.51). ----0-----
http://arka.am/en/news/business/opposition_legislators_in_armenia_slam_government_ proposed_tax_preferences_for_large_exporters/#sthash.yfQ64Uvm.dpuf
YEREVAN, February 5. /ARKA/. On Thursday, the National Assembly
of Armenia discussed a government-proposed bill implying a tenfold
abatement of profit tax (to 2%) for large exporters from Armenia.
Deputy Finance Minister Vakhtang Mirumyan, presenting the bill to the
lawmakers, said it is aimed at attracting fresh foreign investment,
which should be used to boost Armenian exports.
He explained that the dramatic drop in income taxes is for companies,
which will have government-approved plan of actions to boost their
exports up to at least 50 billion drams, which should be reflected
in the companies' accounts in resident Armenian banks.
The preferences apply only to exported products, not those goods sold
in Armenia's territory.
According to him, the bill is aimed at attracting fresh foreign
investment, which should be used to boost Armenian exports. Mirumyan
described the proposed change as 'unprecedented.'
In his words, the two-percent tax would be an unprecedented incentive
for exporters.
"In fact, the government refuses tax revenues in order to stimulate
producers and promote creation of new jobs and economic growth,"
said Mirumyan.
He also said that the proposed change provides for special regulatory
measures to prevent attempts of companies to artificially reduce
their tax payments.
He said the change will not apply to Armenian mining companies.
According to him, no company in Armenia meets now this requirement,
'however, we are negotiating with some foreign investors that could
be attracted by the proposed change'.
The opposition factions, however, reacted angrily to the bill finding
the deputy minister's arguments not convincing.
Tevan Poghosyan, an MP from heritage opposition party, said the
profit tax abatement from 20% to 2% for large exporters will give
room for appearance of bogus companies that will enjoy this local
tax preference.
he said.
Another opposition MP, Khachatur Kokobelyan, leader of the Free
Democrats party, said it is unclear whom this reform targets.
He said nobody disputes the significance of large companies'
activities for Armenia's economy, but . Lawmakers from Armenian
Revolutionary Federation/ Dashnaktsutyun, Orinats Yerkir party and
the Armenian National Congress said they will vote against the bill
since it doesn't solve problems.
said Heghine
Bishryan, head of Orinats Yerkir faction. Remarkable is that even some
MPs from the ruling Republican Party of Armenia put the reasonability
of the bill into question.
In particular, Vahram Baghdasaryan, head of the party's faction in the
parliament, said that support for big exporters should not harm others.
he said.
ôhe bill will be put to vote on February 23. ($1- AMD
476.51). ----0-----
http://arka.am/en/news/business/opposition_legislators_in_armenia_slam_government_ proposed_tax_preferences_for_large_exporters/#sthash.yfQ64Uvm.dpuf