Investments Increase Sevenfold, Says Pashinyan

When we grant benefits to companies, we postpone the payment of value-added tax for three years and exempt them from customs duties, this is essentially the only tool to stimulate investments. This was stated by Armenian Prime Minister Nikol Pashinyan during a government session.

He compared the application of this tool in the first five months of 2018 and this year. "In the first five months of 2018, the government approved 11 projects with an investment commitment of $35.3 million and 502 jobs. In the first five months of this year, we have 25 investment projects with an investment commitment of $254 million and 2,379 jobs. In other words, with the application of this tool, we have a sevenfold increase in investments and a fourfold increase in jobs," Pashinyan noted.

He also added that they have analyzed the steps taken in this direction and found that there are no tangible risks: "People fulfill their projects with 90 percent accuracy or more, and the failures are due to delays. We have not recorded any cases of malicious intent in this context. In this regard, the story related to 'Adamyan' television production is significant. When the government granted benefits, there was a great uproar claiming it was a 'fake' investment. But today, Armenian citizens can buy 'Adamyan' produced televisions from stores. Now there is criticism that the components of the televisions are brought in and only assembled here. Of course, this is true; the first step has to happen before the next step," the Prime Minister said.

Finance Minister Atom Janjughazyan emphasized, "This is essentially the only targeted benefit. We have numerous benefits, but the results obtained from them are not measurable in any form. This tool is targeted. We need to reconsider the meaning of these benefits in the tax code. If they have existed for decades, but no one can evaluate their results, we must re-evaluate and make them targeted."