Consultation Held with Prime Minister Nikol Pashinyan Today

Prime Minister Nikol Pashinyan held a consultation today regarding the framework for tax reforms in the Republic of Armenia. Finance Minister Atom Janjughazyan presented the objectives outlined in the framework, which the tax system reforms should serve, along with the directions and principles within which these changes should be made, and the expected outcomes from implementing these reforms.

The primary goal is to create a balanced approach that will contribute to favorable conditions for economic development, address social issues, and ensure a balanced attitude toward the environment. The minister also referred to measures aimed at improving tax policy, simplifying tax administration, and strengthening the culture of tax payment.

Prime Minister Pashinyan underscored the importance of the topic, stating, “We will be making very bold decisions in the near future, starting with property tax and ending with other tax changes. The logic and purpose of these bold decisions are that state revenues must increase in a way that allows the economy to have the opportunity to develop further.” He emphasized that people need to change their attitude towards paying taxes, which currently exists in the Republic of Armenia. “What needs to be done to convey this message accurately to the people of Armenia?”

He explained that the cornerstone is the fight against corruption, meaning that every citizen of Armenia should be confident that there is a government in place that is not stealing from them and not stealing from anywhere else. Furthermore, the entire state system, from top to bottom, should instill a sense in citizens that public power does not steal, and if there are cases of theft, those individuals will be identified and punished.

The second point is the continuous increase in the efficiency of costs in public administration, meaning that every year we must convince our citizens that the money they pay is spent purposefully, effectively, and correctly - including how employees in public administration are compensated, starting with rewards and extending to other social guarantees. I believe that all the necessary political conditions for this have been created as of 2019, and we must also ensure high remuneration for public administration employees while guaranteeing their high qualifications.”

During the exchange of ideas, issues related to the strengthening and dissemination of a culture of unavoidable tax payment, the provision of tax incentives by sectors, and the introduction of a system for declaring incomes, as well as tax collection and several other matters were discussed.

Nikol Pashinyan noted that the presented framework should become the basis for the strategy of tax reforms and that in discussing and refining it, issues should be viewed from the perspective of providing long-term solutions, as well as ensuring interoperability with other conceptual documents.