The Armenian government has moved to significantly ease its universal income declaration system amidst mounting criticism and confusion surrounding reforms that were set to take effect on 1 November.
The reforms, adopted in 2023, would have required nearly all working Armenians to electronically declare their income, including not only salaries but also transfers and remittances exceeding ֏300,000 ($780). Officials initially framed the measure as a step toward transparency, improved tax collection, and better targeting of social assistance.
However, after months of technical delays and public discontent, the ruling Civil Contract party now plans to scrap most of the mandatory requirements. Under the proposed changes, individuals whose income derives exclusively from officially registered wages will no longer need to submit declarations themselves — the State Revenue Committee (SRC) will automatically prepare them on their behalf.
The decision marks a major retreat from the original plan to roll out universal income declarations by 2025, a project that had already been postponed once from the 1 May deadline to 1 November due to logistical and technical setbacks.
According to SRC head Eduard Hakobyan, only around 92,000 people — a fraction of the estimated 700,000 citizens initially covered — had submitted declarations by late September. Officials acknowledged that most Armenians lacked the required electronic ID cards or faced issues with the state’s online portal.
The rollback was first outlined this week by Civil Contract MP Babken Tunyan, who said citizens with no additional income ‘invisible’ to the SRC — such as remittances, donations, or interest on savings — will no longer need to log into the declaration system. Parliament is expected to formally amend the legislation in the coming days.
Former Justice Minister Arpine Hovhannisyan, now a vocal government critic, argued the move reveals deeper inconsistencies in the reform. In a video address on Tuesday, she warned that citizens with any extra income sources — including transfers exceeding ֏300,000 — will still be responsible for manually updating their declarations or risk fines.
She also pointed out that cashback incentives designed to encourage active participation will apply only to those who personally fill out the forms, rather than rely on the automated system.
‘Those hoping the tax service will handle everything may lose access to these benefits’, Hovhannisyan said.
The government’s change of course comes less than a year before Armenia’s next parliamentary elections, a context not lost on observers. Opposition politicians have accused Prime Minister Nikol Pashinyan of backpedalling to avoid alienating voters frustrated by the perceived bureaucratic burden and lack of clarity in the system.
When first unveiled, officials described the declaration process as a milestone toward fair taxation and a tool to identify hidden income. At the same time, critics questioned both the feasibility and the political timing of such a broad initiative, citing weak public communication and limited digital literacy.
The draft amendments will likely pass swiftly in the Civil Contract–dominated parliament. Still, analysts say the partial reversal underscores the government’s struggle to balance transparency goals with administrative realities — and growing sensitivity to voter dissatisfaction ahead of 2026.
