Armenian Prime Minister Nikol Pashinyan has thrown cold water on a proposal submitted by two Republican Party of Armenia MPs to set the income tax rate at 20% for those making more than AMD 500,000 a month, and 25% for those earning more than that.

At a government cabinet session today, Minister of Finance Atom Janjughazyan said such a move would decrease budgetary revenues by some 45-47 billion drams and that the losses would have to be made up somehow.

Prime Minister Pashinyan noted that the government has decided to forego piecemeal changes to the tax code and examine its fiscal policy options in greater depth.

Pashinyan said the government would introduce a comprehensive tax policy reform package to parliament in September, and that the business community in Armenia expects positive change.

Photo: Minister Atom Janjughazyan