As part of his working visit to the USA, Armenian Prime Minister Nikol Pashinyan, after meetings and discussions with the management of leading IT companies in Silicon Valley, met with Armenian professionals working in the field of high technologies in the Silicon Valley at the office of Synopsys. The meeting was attended by more than 100 IT professionals, the government’s press service reports.
At the beginning of the meeting, RA Minister of High-tech Industry Hakob Arshakyan presented information about the indicators and development prospects of Armenia’s IT sector, and then handed over the floor to Prime Minister Nikol Pashinyan.
In his speech, the Prime Minister of Armenia, in particular, noted:
“Dear compatriots, friends,
I am very glad to see you here today. We are finishing our two-day visit to the state of California, and today we have to leave for New York to attend the UN General Assembly. I must say that the visit to California was very impressive and very effective. Yesterday we had an important event in Los Angeles, basically a meeting, a rally, today we had a series of meetings in Silicon Valley and also this meeting.
What is all this about and why is our interest in Silicon Valley in particular? Of course, we have declared the technological sector a priority for our government, along with tourism, industry, intensive or industrial agriculture. In general, this is related to our vision of the future of Armenia, because we believe that Armenia should be a country with a highly qualified workforce, and Armenia should not be a country with a low-skilled workforce.
Our main message is: the formula for living well is education. The formula for a good life is the education that gives professional skills to our citizens and of course, reforms in the field of education are of the most important and priority importance for us. A little while ago we were talking in a smaller group. Recently, I published in Stepanakert the project of the strategy until 2050, and there is a line where it is said that one of our strategic goals is to make education a national, public practice, which means for us that the educational process in the Republic of Armenia should start from the age of 3. that all 3-year-old children in our country should have access to pre-schools, and the educational process should never end, that is, even after graduating from university and having a successful working career, the educational process should not end.
Our next idea is what I have talked about several times: every person in the Republic of Armenia, from the taxi driver to the prime minister, should have at least a slightly higher level of education than the previous day. In general, all this is primarily an educational process for me, because one of the most important goals of every business or official visit, including today’s visit, is that we get new information, acquire new knowledge, and we should be able to use this knowledge in our future. in works.
Of course, saying that the technology sector in Armenia is a priority is a political statement, it is very important what we do in practice to make it a reality and make Armenia attractive for the technology sector. A very important change has taken place in the Tax Code of Armenia, which, of course, gave rise to great debates. I am happy to report that from January 1, 2020, we will have a flat income tax of 23 percent, and every year that income tax will decrease by 0.5 percent for the next 4 years, and as a result, after 4 or 5 years, we will have a flat income tax of 20 percent.
What does this have to do with technology? We now have, so to speak, a three-tiered income tax: salaries up to 150,000 drams were taxed at 23 percent, salaries up to 2 million drams were taxed at 28 percent and salaries over 2 million drams were taxed at 36 percent. It is clear that one of the most memorable sectors taxed above 23 percent is the IT sector
because salaries there are 500,000 drams and above. This means that we are reducing the income tax for that sector by 13 percent, if we calculate it from the upper ceiling, and in the near future we will reduce it even more by 16 percent, as a result of which, we hope, the environment will be more attractive for investors, a workplace for the IT sector in Armenia. in terms of creating.
According to that legislation, newly registered technology companies founded in Armenia will be exempt from taxes until 2023, and during that time they will already pay 10 percent income tax for employees. In other words, in this case, in addition to the general reduction of the income tax, we have another 13 percent reduction, and we hope that this will also make our country more attractive for startups.
I think it is very important to record the current economic situation in our country. I think, and the data shows that our country’s economy is gaining momentum, and this is also shown by our economic growth forecasts for this year, which are getting better and better all the time. With the latest data, the Central Bank has raised the economic growth forecast for Armenia in 2019 from 6.9 to 7.2. In general, our goal is to achieve economic growth of at least 8-9 percent and transition to double-digit economic growth, but for this, of course, it is necessary that our messages of today and yesterday receive a certain understanding, especially among the Diaspora, especially among the Armenians, and I hope, that it will be so.
Economically, there have been changes of a different order. I want to say that, for example, according to the documents previously adopted by the International Monetary Fund, if the tax/GDP index in Armenia increases annually, changes by 0.3 percent, IMF experts considered that it would be a very good, very positive development. But, according to our calculations, only in 2019, the tax/GDP ratio will increase by 1.3 percent, that is, we will exceed the recommendation of the IMF by 3-4 times. This year, according to our calculations, the shadow economy will decrease by 3 percent. In the first quarter, budget revenues increased by about 25 percent, and these increases allowed us to increase the salaries of soldiers, teachers, doctors, from October 1 we will increase the salaries of firefighters, foresters and forest managers, and from January 1, 2020, pensions will increase by 10 percent.
Today, we are carrying out road construction works of an unprecedented volume in Armenia. Yesterday, I said during the rally that the last time the road network of Armenia was put in order with the funds of Kirk Kerkorian’s “Linsey” Foundation, and I am happy to announce that today, next year and in the coming years, we will be able to carry out at least the same amount of work at the expense and funds of the state budget. or, in general, as much work as was done with the funds of the Linsey Foundation.
One more data, of course, all these data are published, 65,000 new jobs have appeared in Armenia over the last year. A part of these appeared as a result of the reduction of the shadow, the other part is the newly created jobs.
It is very important for us to encourage the citizens of Armenia and establish such an economic formula for them that we can solve all our problems only by work, relying on our talent, the development of our talent, the discovery of that talent at the initial stage, and I am happy, that our indicators show that the citizens of Armenia, the public of Armenia perceive the political messages that we refer to them.
This is a very important thing, because they believe that the most important factor for an economic revolution is the development of a real dialogue between the political power, the government and the citizens, and the dialogue that started between us back in the days of the revolution, when we were on the revolutionary platform, also becoming a government We continue that dialogue effectively. I am convinced that it will continue to bring its results, the results that are already there today. During the last 5 months, I presented the results in two documents called “100 facts about New Armenia”. Therefore, as of today, I can say that we have 200 facts about New Armenia, and all those who want to see concrete, tangible, measurable, visible what has changed in Armenia after the revolution, can get acquainted with those 2 documents and will see it. 200 changes that took place
During the subsequent question-and-answer session, Prime Minister Nikol Pashinyan answered a number of questions from the participants of the meeting, which were related to the development of Armenia, the directions of the development of the IT sector, reforms in the field of education, science, the situation around the Amulsar mine project, etc.
At the end of the meeting, a memorandum of understanding was signed between the Ministry of High-tech Industry and the Armenian General Benevolent Union. Prime Minister Nikol Pashinyan noted that this is the fourth document to be signed within the scope of his visit to the USA, which proves the full and purposeful agenda of the visit.
Prime Minister Nikol Pashinyan’s working visit to the state of California has ended. From San Jose, the Prime Minister of Armenia left for New York, where he will participate in the 74th session of the UN General Assembly and deliver a speech.
We aimed to create a governance system based on accountability and inclusivity. It is this dialogue that empowers us to collectively shape the future of our nation.
As we look to the future, our government remains committed to fostering a vibrant tech ecosystem in Armenia. We recognize the immense potential of our youth, and we are dedicated to equipping them with the tools they need to thrive in a rapidly evolving technological landscape. By investing in education, promoting innovation, and creating a conducive environment for startups, we believe we can transform Armenia into a leading technology hub in the region.
Moreover, our partnership with companies and professionals in Silicon Valley is crucial. We value the expertise and knowledge that can be shared and learned from leading tech companies and innovators. The connections we forge here today can lead to collaborative projects, investment opportunities, and the sharing of best practices that will benefit our growing tech sector.
I want to emphasize that our journey towards becoming a technology-driven economy is a shared responsibility. It requires collaboration among government, private sector, and civil society. Together, we can cultivate a culture of innovation that not only meets the needs of today but also anticipates the challenges of tomorrow.
I urge all of you to continue supporting our vision. Together, let’s build a prosperous future for Armenia, where technology and innovation pave the way for sustainable development and improved quality of life for all our citizens.
Thank you.”
After Prime Minister Pashinyan’s remarks, the meeting proceeded with a discussion where attendees shared their insights and suggestions on how to further enhance the Armenian IT sector and strengthen ties with the global tech community. The collaborative spirit among professionals at the meeting highlighted the collective effort required to drive the tech transformation in Armenia.