Ex-Finance Minister calls for abolishing taxes for micro businesses

ЕРЕВАН, 11 июня. /АРКА/. A former Armenian finance minister Edward Sandoyan said on Sunday that exempting micro businesses from taxes would help create many new jobs. Sandoyan, who is now pro-rector of the Russian-Armenian University in Yerevan, said this would help cut unemployment rate by 30-35 percent. The former minister urged also the government to decentralize economy.

Speaking at a talk-show at Kentron TV station Sandoyan said market mechanisms do not operate in an economy dominated by oligopolies and monopolies and only creation of an effective business environment would allow producing competitive goods.

“Build a normal business environment and it will do the rest of the job. Destroy all monopolies and create equal competitive conditions for all,’ he said.

According to Sandoyan, the opening of Turkish-Armenian border would become a powerful impetus for Armenian economic progress. ‘If we regard Turkey as a transit country, not a market for Armenian goods, and if the border were open we would become part of a large system and large players would arrive here and our local oligarchs would not stand the competition because their management is very ineffective,’ he said.

He said the country’s political and business elite should realize this and press for it.

"Experience has shown that the current business model is not effective, it in fact puts brakes on our economic advance. It should be realized by the authorities. There is a chance and I am an optimist," said Sandoyan. -0-