Armenia's Deputy Minister of Economic Development and Investments Tigran Khachatryan on Thursday said the government was planning to introduce a draft bill that would ultimately grant taxation privileges to newly established IT companies for a period of 5 years.

The new tax rates to be applied for the new players in the IT sector will just be a 10% income tax with no other fees.

This policy by the government hopes to create incentives for the development of the sector in Armenia that will contribute to the curbing of the unemployment rate and the much-needed economic boost the new cabinet of PM Karen Karapetyan is after.

In a country which apart from mineral resources only has a few products to export, the IT sector has been a little success story. Despite Armenia's overall slow economic growth, the IT industry has been growing at an average rate of about 22 percent since 2008, according to the National Statistical Service of the country.

Around 15,000 people are currently employed in the sector.