Government-designed tax changes provoke indignation: former Central Bank governor says
10.11.2011,
23:03
A former governor of Armenian Central Bank lashed out today at the government for approving a package of tax changes which he said provoked a storm of indignation and resentment of the public at large and owners of small and medium-sized businesses.
YEREVAN, 10 November. / ARKA /. A former governor of Armenian Central Bank lashed out today at the government for approving a package of tax changes which he said provoked a storm of indignation and resentment of the public at large and owners of small and medium-sized businesses.
The amendments, approved by the government two weeks ago, have been primarily designed to secure a substantial rise in tax revenue (some 101 billion drams) next year.
Speaking to journalists Bagrat Asatrian criticized the government for presenting the package of proposed changes without holding public debates with people to whom they apply to in the first place.
According to him, the package itself is not anything special, "the question is how the proposed changes will be implemented." He said the government is not going to take a special burden and the question is how the authorities are going to collect the additional taxes and whether the proposed changes would cut the shadow economy.
The chairman of a parliament committee on economic affairs, Vardan Ayvazian, retaliated by saying that the new tax package had been discussed for 45 days with large taxpayers.
"Most of the additional taxes will be paid by 1000 largest taxpayers, and we have discussed and reviewed the new tax package with them. No one was discontent because the changes are designed to improve conditions for small and medium businesses", said Ayvazian.
The new tax legislation calls, in particular, for shifting to progressive taxation scale with respect to individuals with annual income of two million drams and more. These citizens will have to pay 25% of their income as taxes.
Besides, the government plans to increase taxes on elite beverages by 50% and raise customs due for import of expensive cars costing $ 90,000 and more by 20 percent
According to Vardan Ayvazian, ‘there is no doubt that the import of expensive high-speed cars will have a positive impact on the public. And people, who buy expensive drinks, can afford to pay more, while those with limited means will not have to pay more for products made in Armenia and for cheaper imported goods."
Armenian Finance Minister Vache Gabrielian told a Cabinet session today that the government will submit a package of amendments to tax legislation to the National Assembly and ask it to consider and pass them in an accelerated manner. ($1 - 383.91)-0-
The amendments, approved by the government two weeks ago, have been primarily designed to secure a substantial rise in tax revenue (some 101 billion drams) next year.
Speaking to journalists Bagrat Asatrian criticized the government for presenting the package of proposed changes without holding public debates with people to whom they apply to in the first place.
According to him, the package itself is not anything special, "the question is how the proposed changes will be implemented." He said the government is not going to take a special burden and the question is how the authorities are going to collect the additional taxes and whether the proposed changes would cut the shadow economy.
The chairman of a parliament committee on economic affairs, Vardan Ayvazian, retaliated by saying that the new tax package had been discussed for 45 days with large taxpayers.
"Most of the additional taxes will be paid by 1000 largest taxpayers, and we have discussed and reviewed the new tax package with them. No one was discontent because the changes are designed to improve conditions for small and medium businesses", said Ayvazian.
The new tax legislation calls, in particular, for shifting to progressive taxation scale with respect to individuals with annual income of two million drams and more. These citizens will have to pay 25% of their income as taxes.
Besides, the government plans to increase taxes on elite beverages by 50% and raise customs due for import of expensive cars costing $ 90,000 and more by 20 percent
According to Vardan Ayvazian, ‘there is no doubt that the import of expensive high-speed cars will have a positive impact on the public. And people, who buy expensive drinks, can afford to pay more, while those with limited means will not have to pay more for products made in Armenia and for cheaper imported goods."
Armenian Finance Minister Vache Gabrielian told a Cabinet session today that the government will submit a package of amendments to tax legislation to the National Assembly and ask it to consider and pass them in an accelerated manner. ($1 - 383.91)-0-
