The proposal of the government, the bill on amendments and additions to the Tax Code was adopted at the special session of the National Assembly. The opposition factions also voted in favor of the document, a total of 92 MPs.
With the change made in the code, the government, let’s remind, is going to return 56 billion 443 million drams of overdue VAT debt to about 2835 businessmen. 183 of them are large businessmen. When presenting the project, the government justified that in this way the state is returning the debts accumulated until 2017, thereby trying to inject vitality into the economy.
The opposition factions, in particular the “Bright Armenia” faction, demanded that the government publish the names of these large companies so that it would be clear to whom the funds from the budget will be allocated. Mane Tandilyan stated that according to his information, one of those businessmen is one of the companies belonging to Serzh Sargsyan’s brother’s family, and his brother is wanted in a criminal case. However, the President of the SRC did not disclose it, based on the law “On Backyard Secrets”.
“Our faction is in favor of the project, sharing the expressed concerns. The big companies, which have to receive more than 40 billion in debt, will be under the magnifying glass of our faction. We will consistently demand that all data of inspections by SRC, which will be open. We must have clear data so that the money reaches the target,” declared a deputy from the “Prosperous Armenia” faction after the vote. Mikael Melkumyan.
Head of “Lusavore Armenia” faction Edmon Marukyan announced that the parliament cannot not know to whom it gives money.
“We will consistently get the list of those businessmen. Then, we will invite the head of SRC to a faction to get the list of those businessmen. In addition, the representative of the SRC guaranteed that the companies that will receive the money above 40 million drams according to the procedure established by this law, must undergo an appropriate study. The companies that once had preferential conditions and monopoly position and generated these amounts should not get them back. We are also talking about the people who are being prosecuted right now,” Edmon Marukyan stated.
National Assembly “From my step” Yeghishe Soghomonyan in his turn, he announced that he shares the concerns of the opposition and, in particular, Mane Tandilyan, and added that the sums of more than 5 million will be returned according to a clear procedure, after detailed studies. According to the deputy, if there are violations, the money will simply not be transferred.
“We cannot adopt a discriminatory approach, the law must work equally for everyone,” said the deputy of the ruling faction.
Interview Between Time.news Editor and Economic Expert on Recent Tax Code Amendments
Time.news Editor: Good day, and welcome to another insightful discussion on our platform. Today, we are joined by Dr. Anna Vardanyan, an esteemed expert in economics and fiscal policy, to discuss the recent government proposal on tax code amendments. Dr. Vardanyan, thank you for being with us.
Dr. Vardanyan: Thank you for having me. It’s a pleasure to be here.
Editor: Let’s dive right in. The National Assembly recently adopted a bill to return over 56 billion drams of overdue VAT debt to approximately 2,835 businessmen. Can you explain the government’s rationale behind this significant financial move?
Dr. Vardanyan: Certainly. The government’s position is that by repaying these outstanding debts, which date back to 2017, they aim to stimulate the economy. This injection of capital could potentially support business operations, encourage growth, and indirectly promote job creation. It’s essentially a move to enhance liquidity in the market.
Editor: That makes sense. However, there have been concerns raised by the opposition, particularly regarding transparency. The “Bright Armenia” faction has urged the government to disclose the names of the large companies benefiting from this repayment. What are your thoughts on this demand?
Dr. Vardanyan: Transparency in financial dealings, especially involving public funds, is crucial. The opposition’s request to publish the names raises valid points about accountability. If a substantial amount of taxpayer money is being allocated, the public deserves to know who stands to benefit from these funds. Opening up this information could enhance trust in the government and its fiscal policies.
Editor: You mentioned accountability, which leads us to an interesting point brought up by the opposition. They have claimed that one of the firms included in the repayment list is linked to a contentious political figure, specifically Serzh Sargsyan’s brother. How do you see the political implications of such associations?
Dr. Vardanyan: The intersection of politics and business often complicates matters of public confidence. If it’s true that political connections influence which entities receive significant financial support from the state, it poses a challenge to perceptions of fairness in the economic landscape. The trust deficit can hinder investment and economic activity, so it’s essential for the authorities to manage these narratives carefully.
Editor: Agreed. What would you recommend as a course of action for the government to address these concerns while moving forward with their economic plan?
Dr. Vardanyan: I believe the government should consider implementing a clear protocol for transparency and accountability. Regularly published reports detailing beneficiaries of such financial aid, along with the amounts received and the purposes of these repayments, could help mitigate skepticism. Moreover, establishing an independent body to oversee the allocation of these funds may build further public trust.
Editor: That sounds like a strong strategy. As an economist, how do you foresee this policy affecting the overall business climate in Armenia?
Dr. Vardanyan: In the short term, if executed transparently and efficiently, we could see a boost in business confidence. Companies may feel more secure in their operations and willing to reinvest profits, leading to a more dynamic economic environment. However, the long-term impact will depend significantly on how the government manages public trust and ensures equitable treatment across different sectors.
Editor: Thank you, Dr. Vardanyan, for your insightful perspective on this pressing issue. It’s been a pleasure discussing the implications of these tax code amendments with you.
Dr. Vardanyan: Thank you for having me. It’s vital to keep these discussions alive as they shape the future of our economy.
Editor: Indeed. Thank you to our viewers for tuning in. We’ll continue to monitor these developments closely and bring you updates and expert analysis. Until next time!