DOES ARMENIA NEED "TAX VACATION"?

PanARMENIAN.Net
06.03.2009 20:34 GMT+04:00

/PanARMENIAN.Net/ "In current situation the Armenian Government must
land a helping hand to local manufacturers," the Head of Armenian
Manufacturers Union Vazgen Safaryan told a news conference on Friday.

Vazgen Safaryan suggested reducing VAT from 20% to 16 – 17%, and to 15%
for small and medium-sized businesses. " Similarly, Russia plans to
lower the VAT from 17% to 13%. We must adopt the practices of developed
countries by switching from indirect taxes to direct ones," he noted,
citing the example of USA where total share of taxes comprises 52,8%.

"The government should take drastic measures against unfair importers
who turned the upsurge in the exchange rate to their benefit by
raising prices. On the opposite side, if tax vacations are introduced
in Armenia, the country will not be able to provide 940 billion budget
78,9% of which are formed from tax proceeds," Safaryan concluded.