ArmInfo. Armenia plans to establish mechanisms for making non-repayable payments to public organizations, media outlets and political parties from income tax paid by individuals. At its meeting on September 17, the RA government approved amendments to the Tax Code.
According to RA Finance Minister Vahe Hovhannisyan, Armenia currently has an income declaration system under which citizens submit annual income declarations, thereby gaining the opportunity to receive back, through social credits, part of the funds spent on healthcare and education services in the form of income tax. The stable and continuous operation of public organizations, legal entities (individual entrepreneurs) and political parties engaged in media activities is of great importance in terms of developing independent parties and civil society, as well as freedom and impartiality of speech. The problem is that no institutional structures have been formed to provide financial support by individuals to public organizations, legal entities (private entrepreneurs) engaged in media activities, and political parties.
The draft proposes expanding the scope of social expenses introduced in parallel with the individual income declaration system. In particular, it is proposed to establish that social expenses also include funds transferred free of charge by an individual to public organizations, legal entities engaged in media activities, or political parties. In addition, it is proposed that the government determine the maximum amounts of social expenses, the fields of activity of public organizations, legal entities (except entrepreneurs) engaged in media activities, and political parties, the criteria for their submission, the list of information they provide to the tax authority, and the procedure for submitting and publishing the information. For these purposes, lists of these organizations will be created and published by the tax authority. Individuals who have submitted income declarations will be required to electronically select the organizations for themselves, indicating the amount to be allocated to the organization, which the state body will transfer to the recipient.
In this regard, RA Prime Minister Nikol Pashinyan pointed to the benefits that the bill offers to public organizations, media outlets and individual entrepreneurs. But for this, it is very important that citizens participate more actively in the income declaration process.
RA Minister of Justice Srbuhi Galyan noted in this regard that the idea of integrity should underpin the initiative, so that public organizations submit their financial reports annually and media outlets avoid falsifications. At present, the minister continued, a draft package of laws on media self-regulation is already at the Office of the Prime Minister and will soon be submitted for approval to the RA government. In particular, the package provides for the establishment of possible integrity scores for media outlets.
