Armenia’s government on September 17 approved a legislative initiative that would allow citizens, when filing their income declarations, to choose a public organization, media outlet or political party to receive part of the funds derived from the income tax they have paid.
The new mechanism was presented by Finance Minister Vahe Hovhannisyan. He noted that Armenia already has an income declaration system under which citizens can recover part of their spending on education and healthcare through the social expenses mechanism. The government now proposes expanding the definition of social expenses to include financial support for NGOs, media and political parties using income tax paid by individuals.
How the mechanism would work
According to the minister, the tax authority will compile and publish lists of public organizations, media outlets and parties eligible to receive such allocations. These lists will include organizations that meet the established criteria and submit activity reports to the tax authority.
When filling out a declaration, a citizen will be able to choose an organization and specify the amount to be directed to it, after which the state authorities will arrange the transfer. Citizens will be able to allocate funds across all three categories — public organizations, media and political parties.
The government is expected to define the range of participants, the eligibility criteria and the maximum amount that can be transferred. Those details have not yet been finalized.
How the authorities explain the initiative
Hovhannisyan said the aim of the initiative is to increase the financial independence and transparency of public organizations, media and parties, promote freedom of speech and strengthen their ties with the public.
He said public organizations, media and parties are meant to represent and protect the interests of different groups in society. “Therefore, we are creating independent funding mechanisms so that these interests are protected as impartially as possible, while developing democratic institutions,” the minister said.
The bill approved by the government provides for corresponding amendments and an addition to the Tax Code. It will be sent to the National Assembly for consideration. Prime Minister Nikol Pashinyan has instructed officials to work on the issue so that the mechanism can take effect from 2027.
