SUPREME COUNCIL ON INTRODUCTION OF NEW CULTURE OF INCOME ADMINISTRATION CREATED

NOYAN TAPAN
JUNE 19

A Supreme Council on the Introduction of New Culture of Income
Administration has been created in Armenia, the prime minister Tigran
Sargsian told reporters.

The council is headed by the Armenian prime minister, its creation is
envisaged by the complex program on the improvement of tax and customs
administration. According to T. Sargsian, the program has undergone
a international expert examination and received high opinions of
the experts.

The composition of the council has not been officially announced, but
its members were present when the prime minister made the statement:
among them were the minister of finance, the minister of economy,
the head of the State Tax Service, the advisor to the RA president
on economic issues, and others.

In the words of the prime minister, the purpose of the Council is
to coordinate the tax and customs administration reforms, control
this process and to be in constant touch with the public and various
organizations of the business sector.

The prime minister said that a monitoring group adjunct to the Supreme
Council and headed by Aram Gharibian has been set up. A phone number
and an email will be published, thanks to which any person can present
his/her comments and proposals regarding the tax and customs sector,
and these proposals will be discussed by the Council. "In this
way the public will be informed about the process of the program’s
implementation," T. Sargsian said.

The prime minister also announced that with the aim of ensuring
most favorable conditions for small and medium business (SMB), the
SMB development territorial bodies that operate in all the marzes
will assist businessmen in the introduction of tax and customs
administration programs as well. "The following principles will
be used. The administration in SMB sector will be reduced to the
minumum. The assistance, including in the form of accessible credits,
will be increased to the maximum. Finally, SMB contacts with tax bodies
must be implemented by specialized bodies, and the government will
take additional measures to reduce the prices of services provided
by these bodies," the prime minister noted. The fourth statement of
the prime minister was addressed to the public and the mass media. "I
frankly ask for the support of the public and the mass media so that
our reforms will become reality. It is obvious that they will become
reality in case of your trust," T. Sargsian stated.

T. Sargsian explained that publicity is the main guarantee of
the reforms’ implementation. No one, including big entrepreneurs,
will avoid public information about their violations. SMB-related
administration should be simplified (its principles will be published
after July 15). In particular, SMB checks will be conducted in, as
the prime minister put it, "strange" cases. Checks are also going to
be public. The SMB development centers will provide extra services to
businessmen, help them develop business plans and increase the number
of loans. Finally, it is intended that the prices of organizations
providing accounting services to SMB will be affordable: a state
program will be carried out for this purpose.

"We should create an atmosphere of mutual trust in tax issues. The
major task is to ensure equal attitude to everyone, and publicity
will be the main instrument here," T. Sargsian said. In his words,
a legislative amendment is envisaged, according to which all cases
of fining will be made public so that the public will make sure that
everybody is equal before the law. This principle is already in force
in the banking system.