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Illogical Taxes Cause Larger-Scale Shadow - Armenian Economist

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  • Illogical Taxes Cause Larger-Scale Shadow - Armenian Economist

    ILLOGICAL TAXES CAUSE LARGER-SCALE SHADOW - ARMENIAN ECONOMIST

    Tert.am
    04.11.11

    According to the World Bank, an additional AMD 240bn can be collected
    in Armenia as taxes.

    However, the 2012 draft budget provides for an additional AMD 101bn.

    So larger tax revenues should be sought for, Artsvik Minasyan,
    a member of the Armenian Revolutionary Federation Dashnaktsutyun
    (ARF-D), and the economist Tatul Manaseryan said while hosted by the
    Urvagits (Outline) program on the Kentron TV channel.

    The government plans to collect about AMD 18bn from enterprises.

    However, it will cause damage to enterprises with a small turnover,
    but a large number of employees, Minasyan said.

    "About AMD 45bn will be collected due to economic growth and price
    rise. A price rise is, to an extent, of benefit to the government. It
    can show official revenues. Social payments will constitute AMD
    18bn of AMD 55bn, the rest to be collected due to more efficient tax
    administration and higher rates of pay," he added. A price rise is
    a means of showing officially high tax revenues. However, it will
    affect the population's living standards.

    Big businessmen are both close to Armenia's ruling circles and
    members of the opposition, but not all of them will bear an equal
    burden of taxation.

    "It is a good chance for the government to prove it practices equal
    taxation," said Tatul Manaseryan. "Also, if taxes are illogical,
    there is a risk of people 'slipping into shadows.' That is, we are
    not reducing the shadow. We are doing the opposite," he said.


    From: Baghdasarian
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