Expert Says Armenia Needs Progressive Taxation System

EXPERT SAYS ARMENIA NEEDS PROGRESSIVE TAXATION SYSTEM

ARKA
June 9, 2008

YEREVAN, June 9. /ARKA/. A system of progressive taxation should
be established in Armenia providing different taxes for different
sections of the population, Director of the Centre for Political,
Economic and Legal Studies Andranik Tevanyan expressed such an opinion.

Meanwhile, the expert said, new approaches should be used in developing
the legislative mechanisms necessary to make businesses taxable.

"Intensifying the tax burden is not the right solution, since it will
eventually lead to inflation on the domestic market. We had better
set optimal tax rates," he said.

A few days ago the Armenian government presented to public discussion
a comprehensive program for improvement of tax administration. Seven
priority tasks have been specified – correct and full taxation of large
businesses, milder tax administration in relation to smaller companies,
combating corruption in tax sphere, introduction of the principle of
conscientious fulfilment of tax liabilities, introduction of a new
tax supervision policy, introduction of new management schemes and
development of information technologies.