RA PARLIAMENT APPROVED GRANTING OF TAX EXEMPTIONS TO WATER-USING COMPANIES

2007-10-23 10:31:00
ArmInfo.

RA Parliament adopted the first reading of a bill on granting of tax
exemptions to irrigation water-using companies.

As Chairman of the state Water Economy Committee Andranik Andreasyan
said, the matter concerns remissions on payment of fines and penalty
fees, appeared because of delays of payments. Growth of these arrears
is observed for the recent three years. In particular, they made up
400 mln drams in 2005 and 650 mln drams in 2006. It is predicted that
these arrears in 2007 will make up 850 mln drams. A. Andreasyan added
that subsidization of the water economy sphere also grows. However, the
goal is for the water using companies to fully pass to self-repayment,
which is impossible to do presently, under the current tariffs and the
state of the water economy system. As for the capital expenditures,
the state will defray them again.

Though, the subsidization volumes will reduce every year due to
70%-growth of fundraising.