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Armenian Prime Minister Nikol Pashinyan has come up with an initiative to make amendments to the income tax imposed on registered employees. The proposed amendments were announced on Pashinyan’s Facebook Live on Thursday.
In his words, the proposed changes will significantly reduce the tax burden and consequently have a positive effect on the employees. 
According to the new initiative, for employees with a salary below 250 thousand AMD  (USD 515) the new rate will be 20% and 25% for employees with a salary exceeding 250 thousand AMD.
In Pashinyan’s words, the first option it will be in line with the rules of social justice as it will ease the tax burden for low to mid income earners.

The second option proposed by the PM is about introduction of a standard 23% rate to salaries without any application to the range. 

The option, per Pashinyan may attract potential investors, admitting at the same time, that the primary beneficiaries of the option will high-income earners.

To remind according to the existing law, that entered into force on 1 January 2018, employees with salaries below 150 thousand AMD (USD 310) pay 23% income tax, while for employees with a salary exceeding150 thousand the tax rate is 28%.