Armenia’s business community discontented with new tax law

Armenia’s new tax law has caused the business community’s discontent.

The business associations working in Armenia – the American Chamber of Commerce in Armenia (AmCham), Union of Banks of Armenia, Union of Information Technology Enterprises (UITE), Union of Employers of Information and Communication Technologies, Union of Builders of Armenia, European Business Association – disagree with the new draft tax law submitted by the government.

Armenia’s Parliament approved the draft in its first reading.

The speakers hope that, before the Parliament discusses the draft in its second reading, the government will discuss their concerns over the document before submitting it to the Parliament.

AmCham President Tigran Jrbashyan said that they discussed the draft law with the government, with points included in the concept whereas a raw version was submitted to Armenia’s Parliament, which are in conflict with the points raised by the business community.

Armenia’s tax law must promote export amid the competitive the Eurasian economic system, ensure long-lasting economic growth and foreign investments, modernization of national economy. However, the document does not reflect the points.

“We appealed to the prime minister with an open letter, asking him not to submit [the bill] to the National Assembly and recall it for a repeated debate as it hadn’t been coordinated with us. Later, we had a discussion with him – about 2.5 hours – and a recommendation was issued for creating a working group to consider everything. But the bill was later submitted to the National Assembly,” Jrbashyan said. 

He stressed the need of public hearings over the new legislation to smooth out the problematic points.