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Natasha Harutyunyan

Tax Package - Will It Do More Harm Than Good?

"This bill plans for a number of incomprehensible points, especially the part that would call for the presence of tax inspectors in certain places of business. The bill totally contradicts logic, the constitution and a liberal perspective. While I understand that each person must perform their obligations to the state, such an obligation must not be confused with such an approach as included in this bill, "stated Deputy Bostanjyan at a press conference held it to discuss the merits of the tax package now pending in the parliament.
In his view, tax inspectors to be placed in large-scale businesses would have rights nearly equalling those of the business owners themselves. The other speaker at the press conference, economist Andranik Tevanyan, noted that a uni-central economic system had been created in Armenia since 2007 and that it was the result of declaring the budget as an objective. He said that this was a serious mistake. "By adopting the policy of having a big budget, the state was faced with the issue of consolidating the entire economy in its grasp. Under the guise of struggling against the shadow economy, an actual economic redistribution is taking place and the first victims of this policy are small and medium sized business. There is a downturn in all economic sectors according to official statistics except one - retail trade. It has been so squeezed that the budget can no longer be fed by it. Naturally, the last stage of the policy is to be implemented whereby commissars will be appointed to monitor big business. No one is against decreasing the scope of the shadow economy. However, in fact, the policy of the government isn't to decrease the shadow economy but rather to redistribute it."  

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