The government of Armenia intends to fully include citizens engaged in agriculture in the tax system in order to create opportunities for pension savings, health insurance and income tax refunds for them.
Prime Minister Nikol Pashinyan In other words, the main goal of the planned changes is not to increase the revenues of the state budget, but to provide social protection for workers in the field of agriculture.
On October 29, at the government session, during the discussion of the expansion of the universal health insurance system, Pashinyan stated that it is necessary to introduce new mechanisms of taxation in the field of agriculture.
“We need to introduce certain tax systems in the agricultural sector. Moreover, why should we introduce tax systems? not so much for fiscal purposes as for social purposes,” said the Prime Minister.
According to him, today some of the citizens engaged in agriculture are outside the tax system, as a result of which they cannot take advantage of a number of social protection mechanisms intended for working citizens.
Pashinyan noted that during his visits to marzes, many villagers raise the issue of their pension security, complaining that years of work are not counted as seniority. “In dozens of villages, if not more, what are people saying, what will happen to our pension? We work so much, why is our work not considered seniority?” the Prime Minister said.
According to his presentation, the inclusion of agricultural activities in the tax system should solve three main problems: enable farmers to participate in the voluntary accumulated pension system, be included in the universal health insurance program and use income tax refund mechanisms.
The Prime Minister emphasized that it also refers to the possibilities of tax refunds provided in the framework of mortgage loans and social credits, which are currently not available to many farms not included in the tax system.
“It is time for agricultural activities to be fully included in the tax system,” Pashinyan said.
According to him, some of the citizens engaged in agriculture already benefit from the appropriate mechanisms of social security, as they are employed at the same time and pay the taxes prescribed by the law. However, for many citizens engaged in their own economy, these opportunities are limited.
Pashinyan also emphasized the awareness activities regarding the planned changes in rural areas, stressing that citizens should be presented with the social advantages of being included in the tax system.
The expansion of the universal health insurance system was also discussed at the government meeting. Minister of Health Anahit Avanesyan according to the presentation, from January 1, 2027, about 350 thousand citizens receiving a monthly salary of up to 200 thousand drams will be included in the system. Out of their monthly insurance premium of 10,800 drams, 4,400 drams will be paid by the state, the same amount by the employer, and 2,000 drams by the employee.
According to Pashinyan, after this change, the number of citizens included in the insurance system will exceed two million. In the next stages, the government plans to address the inclusion of farms as well.
At the same time, the prime minister did not clarify what taxation regimes will be proposed for agriculture, what rates will be applied and when the relevant changes may come into force.
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