The proposed amendments to the Tax Code plan a 23% flat income tax, which in turn will reduce year-by-year and reach 20%, Deputy Minister of Finance Arman Poghosyan told lawmakers at hearings of the economic affairs committee.
A representative of a civil society organization asked the official, which countries they’d observed in terms of experience in flat income taxation and whether or not they’d studied the failed practice of Georgia, Macedonia and Slovakia in this regard.
Poghosyan noted that they believed flat income taxation should solve two main issues.
“One is the implementation of re-distribution function, which I believe is not carried out in our country. And second is fiscal. Income tax must be such that wage taxes don’t overload entrepreneurs, especially those who carry out export-oriented entrepreneurial activities,” Poghosyan said.
He said the inflation pressures as a result of the amendments were insignificant, and that there were no risks. (Armenpress/Business World Magazine)
