Control prices may be eliminated
One of the issues mostly bothering Armenia’s businessmen and general and citizen importing any product to Armenia is the so-called “control price.”
Prime Minister of Armenia Karen Karapetyan introduced newly appointed State Revenue Committee (SRC) Chairman Vardan Harutyunyan to SRC Staff. Underlining the importance of the SRC as a frontline institution, Karen Karapetyan briefed the staff on the Committee’s operational targets and the rules of the game. In this context, the Prime Minister stressed the need to create a business-friendly environment for law-abiding citizens and economic entities.
“We often take measures against blacklisted entities without anticipating the impact they may have on those businesses working in the white field. The criteria should be as follows: we will refrain from such measures which can result in great benefits, but cause problems for law-abiding entities,” Karen Karapetyan said. The Prime Minister considered it necessary to maximally reduce the inventory and the deadlines for delivery of documentation and references.
The Premier specifically pointed out that he meant not only those references provided by the SRC, but also the ones due from other agencies. “Game rules should be possibly clear so that red tape and the number of references is minimized. No extra requirements should be set forth, if a country certificate is acceptable to us,” the Head of Government emphasized. With reference to control prices, the Prime Minister highlighted the need for a mechanism to review their application on import of goods. The transaction price method is to be applied in assessing the customs value of goods based on the exporter’s invoice as approved by the customs authorities of the country of origin.
In the Premier’s words, while a lot of improvements have already been made, there is still much to do in this area. “For example, make out a white list of non-risky countries and accept their invoice price. I mean the countries where there is a VAT refund. We need to study this area in order to streamline it and curb the red tape by minimizing the field for application of reference prices. Businesses need to understand the rules of the game. I think we will succeed here.”
Karen Karapetyan stressed that he is looking forward to a radical redesign of SRC officer’s image. “You must do everything so that law-abiding businesses and legal persons feel comfortable and, on the contrary, those entities working in the black field should beware of your intervention,” he said. As the Prime Minister said, there should be a level playing field for everyone, and the tax authority must operate with maximum transparency to achieve this.
During the meeting, reference was made to the need for improving and expanding the scope of electronic transactions in SRC activities, reducing corruption risks arising in the course of administration, giving feedback and other issues of topical interest. In conclusion, the Premier said he looked forward to getting proposals and recommendations on structural changes in the SRC.
