New Tax Code to Provide Sustainable Policy in Armenia: IMF Representative
New Tax Code presupposes implementation of complex reforms in legal relations between economic entities, bringing life of which requires great work. As “Armenpress” reports, Teresa Daban, IMF Resident Representative in Armenia, told this at today’s press conference.
She stated this legislative initiative is highly important for further development of Armenia’s economy, accordingly, provision of public awareness on the document is a primary issue.
“Lots of legislative acts on regulation of the tax field have been circulated since Armenia’s independence, both in form of decisions by the Government and initiatives. As a result, sometimes, considerable differences between these legal acts emerge, making problems for economic entities. Development of a new Tax Code came from the necessity of their harmonization,” the IMF Representative said.
Naturally enough, any legal act, particularly, in the field of tax policy, undergoes changes with time. However, according to Teresa Daban, in mid-term perspective the new Tax Code will provide stable tax policy in Armenia.
“On the whole, frequent changes of tax legislation cause uncertainty among economic entities, which is negatively reflected on whole economy. Stable legal ground is a necessary condition to avoid likewise fluctuations. It helps to make the system more fair, providing necessary financial means for the country’s budget expenses.”
“RA Government and the civil society are worth praises, as the Tax Code has been developed due to public discussions, we observed such an approach in few countries,” she added.
According to Paylak Tadevosyan, head of “Protection of Taxpayers” NGO, the new Code is a result of extensive discussions not only of RA Government and the civil society, but of the business community as well.
Vahagn Hambardzumyan, head of Association of SME Accountants, added that the document defines rules of the game, by which the state and the taxpayer should be led. Instead of legal acts and official definitions spread in various documents, there is one general document, based on two basic approaches. The first one is conceptual issues, raised during the discussions, and found their solution in the document. And the second one is more specialized approaches meant for prevention of administrative issues, clarify accounting and socialization between the taxpayer and the body for tax collection,” he said.
