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Armenia’s Government Under Fire for Tax Exemptions of Religious Organizations: Calls for Transparency and Accountability

Armenia’s government has faced criticism for its handling of public health issues, with former Minister of Environment Arman Tatoyan expressing his concerns on Facebook. Tatoyan argued that political problems cannot be resolved through violence or suppression of the “apricot” movement, a civic group calling for constitutional reforms in line with the current political climate. He emphasized that this movement is supported by various sectors of society, including the opposition and internal forces. Tatoyan also highlighted international examples related to the jurisdiction of the Armenian Apostolic Church to underscore his point.

In Armenia, the Armenian Apostolic Church is not required to pay taxes on donations received for religious or spiritual services. However, commercial activities within the church’s premises, such as bakeries or bookstores, are subject to taxation. Additionally, the government provides financial assistance for the wages of the clergy and the maintenance costs of churches, considering this as a contractual contribution.

A similar tax exemption exists for churches in Great Britain, where the majority are registered as non-profit organizations. Churches in the UK do not pay taxes on donations or religious activities, but they must pay taxes for any commercial ventures they undertake. For instance, if a church rents out a space such as a lounge or library for commercial purposes, they are required to pay taxes on the income generated. The government also supports the salaries of clergy and maintenance expenses for churches.

In Norway, the National Church and other recognized religious communities receive funding from the government and municipalities. Religious organizations’ financial statements are exempt from taxes, and tax-exempt amounts are allocated towards religious activities, donation collection, and income from religious events.

In Russia, religious organizations, particularly the Russian Orthodox Church, benefit from a special tax regime. Taxes related to religious and educational activities are waived for all religious organizations. Additionally, taxes on income from charitable activities and other religious undertakings are not applicable. This means that financial contributions from members, worship activities, and income generated from religious activities are exempt from taxes.

Armenia should take into consideration the tax laws implemented in other countries and revise its tax regime concerning religious and non-profit organizations. It is crucial to ensure transparency, accountability, and fairness in the financial and commercial activities of religious organizations. Religious entities involved in commercial ventures should not be exempt from taxes, as this encourages a more equitable system.