Armenia’s business organizations slam IMF resident representative for speaking against tax breaks to hi-tech sector
27.04.2011,
00:30
Armenia’s business organizations slam IMF resident representative for speaking against tax breaks to hi-tech sector
YEREVAN, April 26, /ARKA/. Armenia’s three major business organizations - the Union of Manufacturers and Businessmen (UMB), the Union of Information Technology Enterprises (UITE) , and the Commerce and Industry Chamber (CIC), sent an open letter to International Monetary Fund (IMF) Resident Representative Guillermo Tolosa demanding explanations in connection with his statement about the inexpediency of tax benefits pledged by the government to high-tech companies. Tolosa made the statement during a news conference earlier this month.
During an April 8 meeting with members of business associations president Serzh Sargsyan said his government was ready to exempt companies producing “something that is not manufactured in the republic” from profit tax for three or four years. He said the Armenian government could also defer the collection of VAT from them in order to boost creation of new jobs.
Asked during an April 15 news conference to comment on president Sargsyan’s proposal, Guillermo Tolosa spoke out against the proposed measure saying the IMF is generally opposed to tax privileges because they would have a negative impact on the already problematic tax collection in the country.
The authors of the letter say they welcome president Sargsyan’s proposal and describe Tolosa’s statement as “ungrounded” saying it is the innovation sector that will facilitate Armenia’s economic recovery in the upcoming years.
“We are greatly concerned over your statement since such a critical attitude to the improvement of taxation will inevitably cause a decline in production and innovation business,” the letter says.
The authors of the letter suggest that public discussions be held and hope to hear Mr. Tolosa’s explanations concerning his statement and IMF’s official stance on tax breaks offered to hi-tech sector. They also would like to hear Armenian finance and economy ministers.
The letter was signed by the head of the TIC Martin Sargsyan, the chairman of the UMB Arsen Ghazarian and UITE CEO Hovhannes Avoyan. It was also addressed to the ministers of economy and finance. -0-
During an April 8 meeting with members of business associations president Serzh Sargsyan said his government was ready to exempt companies producing “something that is not manufactured in the republic” from profit tax for three or four years. He said the Armenian government could also defer the collection of VAT from them in order to boost creation of new jobs.
Asked during an April 15 news conference to comment on president Sargsyan’s proposal, Guillermo Tolosa spoke out against the proposed measure saying the IMF is generally opposed to tax privileges because they would have a negative impact on the already problematic tax collection in the country.
The authors of the letter say they welcome president Sargsyan’s proposal and describe Tolosa’s statement as “ungrounded” saying it is the innovation sector that will facilitate Armenia’s economic recovery in the upcoming years.
“We are greatly concerned over your statement since such a critical attitude to the improvement of taxation will inevitably cause a decline in production and innovation business,” the letter says.
The authors of the letter suggest that public discussions be held and hope to hear Mr. Tolosa’s explanations concerning his statement and IMF’s official stance on tax breaks offered to hi-tech sector. They also would like to hear Armenian finance and economy ministers.
The letter was signed by the head of the TIC Martin Sargsyan, the chairman of the UMB Arsen Ghazarian and UITE CEO Hovhannes Avoyan. It was also addressed to the ministers of economy and finance. -0-
