Thirty percent of Armenian economy is clandestine- economist says
25.05.2017,
16:18
About 30% of Armenia’ economy is still not taxed, Grant Mikaelyan, a researcher at the Caucasus Institute, told ARKA today at the presentation of his book called "The Shadow Economy in Armenia."
YEREVAN, May 25. /ARKA/. About 30% of Armenia’ economy is still not taxed, Grant Mikaelyan, a researcher at the Caucasus Institute, told ARKA today at the presentation of his book called "The Shadow Economy in Armenia." In his words, the figure is not surprising taking into account the level of economic development of Armenia.
"If we compare this indicator with the indicators of the past years, we can see a reduction in the share of the shadow economy which occurred due to improved tax collection rate and the institutional environment as part of contacts with the European Union," he said.
According to him, micro-enterprises and individual entrepreneurs have to conceal their revenue because otherwise they will die. As for large enterprises, the authorities need to reform the taxation administration and improve the tax and customs personnel.
"The steps taken by the Armenian government in the fight against the shadow produce some results, but it's still not possible to say that a sharp decline occurred over the past six months. I think that in this struggle the most important thing is creating an institutional environment, «said Mikaelyan. -0-
"If we compare this indicator with the indicators of the past years, we can see a reduction in the share of the shadow economy which occurred due to improved tax collection rate and the institutional environment as part of contacts with the European Union," he said.
According to him, micro-enterprises and individual entrepreneurs have to conceal their revenue because otherwise they will die. As for large enterprises, the authorities need to reform the taxation administration and improve the tax and customs personnel.
"The steps taken by the Armenian government in the fight against the shadow produce some results, but it's still not possible to say that a sharp decline occurred over the past six months. I think that in this struggle the most important thing is creating an institutional environment, «said Mikaelyan. -0-
