Oskanyan finds 0.2-0.4% annual tax revenue growth rate projected by Armenian government for 2012-2017 too low

YEREVAN, June 20. /ARKA/. Vardan Oskanyan, MP from Prosperous Armenia party and former foreign minister, finds the 0.2-0.4% annual tax revenue growth rate projected by Armenian government for the period between 2012 and 2017 too low, given that the government can intensify tax inflow by launching crackdown on shady dealings.

 

Discussing today the new government’s program with Prime Minister Tigran Sargsyan, he said that the shadow economy makes up 30% of the national economy.

 

“Even if we ensure a 0.4% growth, the upper benchmark of the projected indicator, the ratio of tax revenue to GDP will grow 2% at best to 17.36%, while the average ratio in the region has already reached 24-25%,” he said.

 

Oskanyan also added that such a low indicator projected in the budget is a kind of an attempt of the government to shield itself from criticism in the future.

 

The premier admitted that there is a huge potential for enlarging tax revenue, but it is necessary to identify and voice the problem for doing that.

 

“First of all, the government should identify the major illness of our economy and remedy it through legislative changes, an effective penal system and vesting the antitrust agency with broader powers. This will require also political will,” he said.

 

The former foreign minister said that unfortunately no just business environment has been created in the country so far, and this hobbles economic development.

 

“The main struggle mechanism is transparency and civic society control,” he said. “It is necessary to make public audit results and large companies’ reports as well as to increase the volume of cashless transactions,” he said. M.V.-0-