Press releases

10% income contributions to the mandatory funded pension system shall be formed in the proportion of 2.5 to 7.5%


more 19 photos

 An extraordinary Cabinet meeting was held today, chaired by Prime Minister Nikol Pashinyan.

Proceeding from the need to improve the business environment and enhance tax administration efficiency, the Executive first approved a set of amendments to RA Tax Code, to the law “On amending RA Tax Code” as adopted on December 21, 2017, as well as draft amendments to the law “On Tax Authority-established tax benefits” and “On normative legal acts.”

The amendments imply removing the privilege of application of reduced tax rates on export programs from January 1, 2022. At the same time, they enable taxpayers to join the system of tax benefits until the deadline of December 31, 2018, in which case the privilege will continue to be effective through January 1, 2022.

Those road taxpayers entering the Republic of Armenia with transport means registered in the Islamic Republic of Iran shall be exempt from road tax, provided that such transport means be stationed in the area under the control of the customs administration of the Republic of Armenia and the Islamic Republic of Iran – not farther than 1 km off the State border.

The problem is that in order to avoid paying the road tax, Iranian trucks do not cross the border, due to which all related freight services (loading, pumping, storage, packing, weighing, etc.) are provided on the territory of the Iranian side.

Touching upon the issue of remitting the fines and penalties accrued on bad debts, the Prime Minister said: “As a matter of fact, we thereby suggest that citizens go back to the original contractual condition just as agreed upon by borrower and the bank. That is to say, the negative history of their relations should be erased and they should try to start relations from a new chapter.”

The Government approved a draft amendment to the law “On funded pensions,” which stipulates that the mandatory funded pension component is coming into force on July 1, 2018. The bill suggests that the citizens’ 10% contributions to the mandatory funded pension system will be formed in the proportion of 2.5 to 7.5%, i.e. 2.5% shall be contributed by the citizen, and 7.5% - by the State. Note that under the currently applicable system, the State and the beneficiaries are making equal contributions - 5% each.

The meeting next approved the draft law “On amending RA Administrative Procedure Code.” It is expected to provide for a comprehensive framework for the review of judicial acts in the light of new circumstances.

The Government decided to appoint Sasun Khachatryan to the post of Head of Special Investigation Service of the Republic of Armenia.

← Back to list