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TAXES ON TRANSFERS?
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy23904.html
Published: 17:04:20 - 24/10/2011
In Armenia, everyone speaks with fear about the upcoming tax package
to be proposed by the government. Many experts argue that the promised
tax increase would affect primarily the small businesses and ordinary
citizens. In this case, the government says it intends to increase
revenues by raising taxes and reducing shadows.
In particular, the Minister of Finance of Armenia Vache Gabrielyan
said that the excise rates will be reviewed and corrected. Besides,
the bill on the amendments to the tax regime on mining and raw
materials industry has already been introduced before the parliament.
No one comments on the new tax reforms because they have not been
introduced before the parliament yet. This is strange because the
tax package will have to be adopted along with the budget and it is
necessary to discuss it thoroughly. But, apparently, the government
decided to choose the favorite method of "fait accompli" when at
the very last moment the law draft is sent to the parliament and
adopted quickly.
In the meantime, this package can have a meaning of life-importance
for the citizens. According to international assessments, about one
third of Armenia's population is considered poor. A little "richer"
are the owners of the small business, whose income is hardly enough for
food under the current inflation rates. These people hardly make both
ends meet and additional tax burden could become unbearable for many.
Anyway, it is still not known whether the law draft will be adopted by
the parliament considering the fact that the owners of the "excise"
and "mining and raw materials industry" are the same members of
parliament. A couple of months remain for them to complete their
office and they are unlikely to harm themselves, most probably, they
will try to find other solutions. Say, they could cover with more
taxes those who receive bank transfers. In the end, even the Prime
Minister admits that the situation in Armenia will mostly depend on
the economy of Russia and the transfers from this country.
Since the Armenian government takes a part of any money coming
into the pockets of the Armenian citizens, transfers cannot be an
exception. While arriving, they are already cut twice "thanks" to
the "floating" exchange rate of the Armenian dram, as well as the
"sticky hands" of the banks, but the citizens reach something.
Last year the "operation" on nationwide fundraising in the form of
CTP (Compulsory Third Party Insurance), when almost every family had
to fork out was held. Now they will invent a new way to "invisibly"
rob people.
It will be possible to judge from how the government will carry
out tax reform and whether it will be able to tax super profits the
seriousness of their intentions. However, tax reforms are demanded
European structures as a condition of entry into the European Free
Trade Area. However, Armenia has signed the Accession Treaty in the
area of CIS free â~@~Kâ~@~Ktrade zone, but it does not require any
tax reform.
Quite the contrary.
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy23904.html
Published: 17:04:20 - 24/10/2011
In Armenia, everyone speaks with fear about the upcoming tax package
to be proposed by the government. Many experts argue that the promised
tax increase would affect primarily the small businesses and ordinary
citizens. In this case, the government says it intends to increase
revenues by raising taxes and reducing shadows.
In particular, the Minister of Finance of Armenia Vache Gabrielyan
said that the excise rates will be reviewed and corrected. Besides,
the bill on the amendments to the tax regime on mining and raw
materials industry has already been introduced before the parliament.
No one comments on the new tax reforms because they have not been
introduced before the parliament yet. This is strange because the
tax package will have to be adopted along with the budget and it is
necessary to discuss it thoroughly. But, apparently, the government
decided to choose the favorite method of "fait accompli" when at
the very last moment the law draft is sent to the parliament and
adopted quickly.
In the meantime, this package can have a meaning of life-importance
for the citizens. According to international assessments, about one
third of Armenia's population is considered poor. A little "richer"
are the owners of the small business, whose income is hardly enough for
food under the current inflation rates. These people hardly make both
ends meet and additional tax burden could become unbearable for many.
Anyway, it is still not known whether the law draft will be adopted by
the parliament considering the fact that the owners of the "excise"
and "mining and raw materials industry" are the same members of
parliament. A couple of months remain for them to complete their
office and they are unlikely to harm themselves, most probably, they
will try to find other solutions. Say, they could cover with more
taxes those who receive bank transfers. In the end, even the Prime
Minister admits that the situation in Armenia will mostly depend on
the economy of Russia and the transfers from this country.
Since the Armenian government takes a part of any money coming
into the pockets of the Armenian citizens, transfers cannot be an
exception. While arriving, they are already cut twice "thanks" to
the "floating" exchange rate of the Armenian dram, as well as the
"sticky hands" of the banks, but the citizens reach something.
Last year the "operation" on nationwide fundraising in the form of
CTP (Compulsory Third Party Insurance), when almost every family had
to fork out was held. Now they will invent a new way to "invisibly"
rob people.
It will be possible to judge from how the government will carry
out tax reform and whether it will be able to tax super profits the
seriousness of their intentions. However, tax reforms are demanded
European structures as a condition of entry into the European Free
Trade Area. However, Armenia has signed the Accession Treaty in the
area of CIS free â~@~Kâ~@~Ktrade zone, but it does not require any
tax reform.
Quite the contrary.