“Citizens should be convinced that the government does not embezzle in state funds” - Tax Reform Concept Discussed in Government
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Prime Minister Nikol Pashinyan held a consultative meeting to discuss the concept of tax reform in the Republic of Armenia.
Minister of Finance Atom Janjughazyan presented the goals, directions and principles set forth in the concept of tax reform, as well as the expected results. The main objective is to develop a balanced approach that will help provide favorable conditions for economic growth, the solution of social problems and a balanced attitude towards the environment. Reference was made to the steps aimed at improving the government’s tax policy, simplifying tax administration and introducing civilized tax payment practices.
Prime Minister Pashinyan stated in this connection: “We will make bold decisions in the nearest future, starting with property tax and ending with other tax changes. The logic and purpose of these bold decisions is to ensure that budget revenues increase in the same way as the economy grows. In parallel, people should change their tax payment behavior in Armenia.
What should be done to get this message through to the citizens of Armenia? The fight against corruption is the cornerstone in this matter, i.e. every citizen of the Republic of Armenia should be convinced that the government, and not only the government, but the state system, as a whole, does not embezzle in state funds. The citizens should make sure that all those who do so will be identified and prosecuted.
Secondly, this is the constant increase in public spending efficiency, which means that we will have to persuade our citizens every year that we spend the money that they pay purposefully, efficiently and accurately, including the salaries paid to the staff employed in the system public administration, ranging from bonuses to other social guarantees.
I think that all the necessary political conditions for this were created at the end of 2019, we must also ensure high wages for employees of the public administration system, while at the same time providing for adequate qualifications.”
The need for promoting a modern tax payment culture, providing tax incentives in individual sectors, introducing a new system of income declarations, collecting taxes were discussed during the exchange of views that followed.
Prime Minister Pashinyan noted that the proposed concept should lie at the heart of the tax reform strategy. He emphasized that when finalizing it, the tasks should be considered from the perspective of long-term solutions and interconnectivity between conceptual documents.