New reforms in Armenia’s IT industry or attempt to silence civil movement

The Armenian government’s new decision on the IT sector, which envisages tax benefits to high-tech start-ups, has caused varied responses in Armenia’s IT industry.

Some fear that the reforms are aimed at silencing the movement against funded pensions.

Bagrat Yengibaryan, Director of the Enterprise Incubator Foundation (EIF), told Tert.am that Armenia’s IT industry is undergoing serious changes. The number of start-ups is a most important factor.

“This initiative will afford serious opportunities during the coming three years – laying emphasis not only on home-made products, but also on carrying out orders,” he said.

As to whether the decision is aimed at silencing the movement against funded pensions, Yengibaryan said:

“We discussed the issue before the funded pensions bill was enacted. It has nothing to do with the movement against funded pensions.”

Karen Vardanyan, Executive Director, Union of Information Technology Enterprises, believes that technological enterprise is one of the most important components of IT development. That is, young people can start businesses using high-tech advantages.

“The implementation of this decision may require specifications, but it is an important step because all the countries have similar laws. If we do not follow this example, we will lag behind,” he said.

Vardanyan does not think the government’s decision will influence the movement against funded pensions. The movement members are mostly highly-qualified engineers.

The funded pensions law is intended for individuals, whereas the new law is intended for businessmen.

“If the funded pensions law is aimed at 200 to 300 thousand people, this law is intended for 200 to 300 people. They cannot be compared.”

Gevorg Harutyunyan, lawyer for the movement against funded pensions, welcomes tax benefits for high-tech start-ups

As to whether the government’s decision is aimed at silencing the movement, he said:

“These authorities can be expected to. However positive is this step, the government’s decision has overlapped the most active stage of the movement. Also, IT sector representatives are mostly members of the movement, which arouses strong doubts about the authorities’ intentions.”