The Government Intends to Increase the Effectiveness of Investigations Into the Cases of Illegally Acquired Property

• 05.05.2022, 18:30
•  World,  Armenia

A regular Cabinet meeting took place today, chaired by Prime Minister Nikol Pashinyan. The Government approved the draft law "On Making Amendments to the Law on Confiscation of Property of Illegal Origin”. The adoption of the draft law is conditioned by the need to reconsider the grounds for initiating proceedings on confiscation of property of illegal origin, the period of investigation and opportunities for confiscating the property. In particular, the draft proposes to change the notion of "official", to include within the notion of "official" those persons who at the beginning of the investigation are obliged to submit a declaration of property according to the current version of the Law on Public Service, or a person who held such a position or a person who has held a position equivalent to such a position. The draft envisages extension of the investigation period, consider the period extended for those cases that started before the entry into force of the law but continue as of the entry into force of the law.

The Government also approved the draft laws "On Making Amendments to the Tax Code of the Republic of Armenia" and "On Making Amendments to the Law on State Duty". The need for approving the draft laws is conditioned by the aim of making the royalty system for metallic minerals more responsive in response to international metal prices and more progressive. The draft proposes to stop the application of state duty for the export of copper-molybdenum concentrate, as well as molybdenum export starting from January 1, 2023. It is also proposed to make the system more progressive by maintaining the general principles underlying the current royalty system. In particular, it is proposed to revise the royalty calculation formula so that there is no increase of the royalty tax burden for companies with a 10% profit margin. The goal of this approach is to have a system in which the tax burden on royalties does not become problematic in terms of ensuring the continuity of production and economic activities of companies in the conditions of declining international metal prices and, consequently, profitability of companies.

The Government has approved the form of the agreement on recognizing the "C&M International" LLC as a ferry transportation operator for export/import from/to the territory of the Republic of Armenia, the settlement agreement on the cargo transportation and services provision by "South Caucasus Railway" CJSC and the “Russian Railways” OJSC. The adopting the decision is conditioned by the need to reduce problems during the cargo transportations to/from the Republic of Armenia due to fact that the Stepantsminda-Lars highway, the only functioning land route from Russia to Armenia, is regularly closed due to unfavorable weather conditions. As a result, it will be possible to make the logistical infrastructure of cargo transportation more accessible for Armenian cargo companies during the period of high seasonal prices, to reduce barriers, to promote the export of Armenian goods to the international market, to significantly increase the volume of cargo transportation. Reimbursement of ferry transportation costs will be a new impetus for the Armenian economy, as well as will ensure propper competition to Upper Lars.

The Government approved the proposal to sign a loan agreement "Additional financing for the Education Improvement Program" between the Republic of Armenia and the International Bank for Reconstruction and Development. The loan agreement provides for allocation of €22,600,000. Accordingly, it is planned to expand the directions within the framework of the "Improvement of Education" loan program. In particular, it is planned to create affordable pre-school educational services in 80 settlements, which will involve 300 children aged 4-6, 4 high schools will be renovated, furnished and re-equipped, 200 secondary schools will be provided with 5 natural science and engineering laboratories each, etc.