Monday, February 18 2019 18:08

ArmInfo.The 5-year program of action presented by the government, providing comprehensive solutions to problems in various fields, contains valuable  observations on the principles of efficient governance, states the  need for an uncompromising fight against corruption, building an  export-oriented competitive economy, creating a favorable investment  environment, transforming information and high technologies in the  locomotive of the economy and the military industrial complex, etc. 

This is stated in the official report of the Armenian National  Congress (ANC).

ANC presented addenda to the government program, focusing on changing  the socio-political system. In particular, the document stated that a  constitutional referendum will be held during the year to restore the  semi-presidential form of government, after which the presidential  elections will be held next year. The change of the RA Electoral Code  is supposed to be at the root.

According to the drafters, there is also a need to adopt a new law on  combating corruption, and to introduce a new concept of solving the  issue of party financing - to move from state to public funding in  the experience of Hungary and Germany.

"It is necessary to thoroughly review the regulatory field of the  formation and activities of trade unions, to create conditions for  their real development," the source said. In order to obtain a  competitive and free economy, which implies, in particular, the  eradication of corruption, the ANC proposes to revise the income  declaration system of high-ranking officials and other civil  servants, to exclude the formation of off-balance means in state  bodies, to clearly separate power and big business.

At the same time, the drafters talk about the need to eliminate  artificial monopolies, guarantee equal conditions for all economic  entities, adopt a new antimonopoly policy, in particular, providing  for the expansion of powers and functions of the State Commission for  the Protection of Economic Competition.

According to the source, the market share of any company with the  exception of real monopolies should be set at 33.3%. At the same  time, credits to the state budget from the monopolies' revenues  should not be 2%, but 10% and higher.

The ANC also sees the need for a clear separation of two different  types of trade - wholesale and retail. In this regard, it is proposed  to strictly streamline the activities of supermarkets, and to ensure  the life of small stores in large cities, regularly hold mobile food  fairs, with a low level of mandatory payments and taxation. According  to the compilers, it is necessary to remove the public procurement  system from the jurisdiction of the Ministry of Finance, to develop  anti-dumping legislation.

Regarding the tax system, the ANC document states that the tax regime  should be stable every three years, which excludes an increase in the  amount of tax payments or any legislative changes during this period.  In addition, it is proposed to significantly simplify the tax and  customs system, the amount of taxes from 15 to bring to 6 (tax on  profits, income tax, excise tax, VAT, local tax and customs duties),  the turnover tax to apply as a replaceable tax. However, gradually  reduce the VAT (up to 15%). In this vein, according to the drafters  of the recommendations, there is a need to exempt the service sector  from paying VAT, setting a different taxation procedure for this  sector. The minimum tariff is proposed for customs reference prices.

Stimulation of investments ANC sees in the release of companies that  have invested from $ 1 to $ 5 million from the payment of income tax  for 2 years, and for 5 years for investors who have made investments  of $ 5 million and above. In addition, it was proposed to exempt  investors from profit tax for another 2 years, as well as innovative  business, with the condition that these amounts be paid to the state  budget over the next 5 years.

In all agricultural regions, it was proposed to form agro-stations to  service agriculture (including the machine-transport park), with a  20% state stake, with the goal of selling the state stake in the  future and creating rural cooperatives.

In addition, the ANC sees the need to create a state-owned Bank for  Foreign Trade and Investment, as well as the Ministry of Export  Development, whose main task will be to analyze global development  trends, market research for local products, advise, and develop  export-oriented legislation.

According to the drafters of the document, tourism should be  considered as a strategic direction of the country's development.  With the use of tax instruments, it was proposed to reduce the cost  of servicing Zvartnots airport, in order to significantly reduce the  cost of air travel.

You can get acquainted with the proposals of National Press to solve  problems in various sectors of Armenia in more detail by clicking on  www.anc.am.