ARMENIAN ECONOMIST: BUSINESS TAXES SHOULD BE REDUCED BY 20% PROPORTIONAL TO SHARP DEPRECIATION OF ARMENIAN DRAM

ArmInfo
2009-03-04 12:50:00

ArmInfo. Business taxes should be reduced by 20% proportional to sharp
depreciation of the Armenian dram, Head of a Scientific-Research Center
"Political Economy" Andranik Tevanyan told journalists today.

He said 20% increase of the dollar cost creates a risk of increase
of prices for all the import goods, as well as the local production
branches which depend on them. ‘The tax load on business should
be reduced under the developed conditions – this is a truism. It
is necessary to return to the fixed rates on a retail trade, and
delay installation of cash registers till the better times’, the
economist said. It is also necessary to reduce the budget revenue
and expenditure sides in parallel with reduction of the tax load,
i.e. to raise a question of its sequestrum, Tevanyan said. ‘The budget
grew almost twice over the last 2 years – 1,7 bln drams, then 2,5 and
later a bit more than 3. All the additional revenue was assured at
the cost of business, mainly a small and medium one which is strongly
pressed now. Revision of the budget will become here the only way out>,
the economist said.

To recall, the Armenian budget revenue side for 2009 makes up 905
bln drams, the budget expenditure – 945 bln drams. These indicators
in the budget 2008 made up 768 and 844 bln drams respectively.