Social advertising in Armenia will be exempted from taxation

ArmInfo. Armenian government intends to take another step towards decentralization of power and replenishment of the budgets of local governments. At a meeting on 20 August, the executive body approved amendments to the Tax Code...

Social advertising in Armenia will be exempted from taxation
ArmInfo. Armenian government intends to take another step towards decentralization of power and replenishment of the budgets of local governments. At a meeting on 20 August, the executive body approved amendments to the Tax Code and a package of related laws. According to the Minister of Territorial Administration and  Infrastructures of the Republic of Armenia Suren Papikyan, the  presented package envisages exemption from taxation of social  advertising placed on the roads. At the same time, advertisers will  have to pay to the budgets of local self-government bodies a monthly  fee for each square meter of billboard instead of the previously  established road tax.  On state, interstate and regional roads, with  the exception of sections passing through settlements, the road tax  for placed advertisements will be calculated at 25% of the original  amount. If the advertiser advertises his activities, then for each  square meter the road tax will be calculated at the rate of 10% of  the original amount. Suren Papikyan stressed that, despite the fact  that the tax that was sent to the state budget is replaced by the tax  that is paid to the community, the responsibility for the roadway  will still be borne by the state. The Ministry of Finance opposed this initiative. The head of the  department, Atom Janjughazyan, noted that decentralization should  mean not only the transfer of rights, but also responsibilities, and,  according to the draft, the state retains responsibilities for  itself. At the same time, as Janjughazyan noted, the financial losses  are not large. "The issue here is not about money, but about the  approach to solving the problem," the head of the Ministry of Finance  said, urging to refrain from adopting the draft and to discuss the  issue again in order to make the right decision.  In response,  Papikyan noted that similar projects are being developed to transfer  responsibility to communities. They will soon be piloted in larger  communities, but a similar project has now been adopted to help  communities become accustomed to their new responsibilities.