Armenian premier: We are forced to reform Armenian economy not to find
ourselves in a hard situation

2009-03-13 19:03:00

ArmInfo. `We are forced to start reforming Armenian economy, otherwise
we shall find ourselves in a vet hard situation’, – Prime Minister of
Armenia Tigran Sarkisyan told a group of journalists.

Certainly, he added, it is expedient to make economic reforms when
there is serious growth of economy, which will make possible to form
more favorable situation in the country for making the economic
reforms. And on the contrary it is very difficult to make reforms if
economy is falling in the country. `But the world experience shows
that economy radically changes when the life itself makes us do such
actions. And the politicians, which adopt such decisions, implement
this unpopular step as there is no alternative’, – Sarkisyan said and
added that the measures of the government are directed to creation of
favorable producing conditions for small and medium-sized business and
ensuring tax revenues. `If we cannot ensure tax collection, we shall
not be able to implement expenses either. This will seriously affect
growth of the GDP and the economy of the country in general’, – the
premier said. He also added that when fulfilling the reforming
programme the economic field and the negative consequences connected
with the world economic crisis should be taken into account. The
reforms being implemented at present are directed to overcoming of
this problem.

Tigran Sarkisyan also said that the main purpose of the tax
administration reforming is creation of equal conditions for all the
economic entities, which have to act in an open and transparent way and
their financial reports should be available for the society. Big
companies should hold the main burden of taxes. All these measures will
make it possible to form in the country favorable tax administration
for small and medium-sized business, and this was implemented. Numerous
decisions were adopted which noticeably simplified the tax burden for
small and medium-sized business. In particular, the VAT
level was risen up to 58 mln drams instead of the present 3 mln. The
machinery of the tax administration for small and medium-sized business
was also changed a little. The government refused services of
commissions, giving an opportunity to small and medium companies to
submit their reports to the tax bodies via the e:mail. The hotels,
which do not have the relevant rating, have to pay the fixed payments.
This will rule out possibility of contact with the tax inspector. The
acting legislation has been also changed, according to which external
audit should be held in big business with an annual circulation more
than 500 mln drams and its results should be published. All these
measures are directed to ease consequences of the world economic
crisis, Sarkisyan said.

He is absolutely against a view that application of the cash registers
is directed against small and medium-sized business. `Application of
the cash registers is first of all directed against big business,
since organizers of the trade points have to set cash registers, and
they are representatives of big business’, – Sarkisyan said. As a
result of application of cash registers tax collection rose by 7-8
times in January 2009 of compared with December 2008. `Now imagine
what a level of shadow economy we have’, – Sarkisyan said and added
that application of the cash registers is stemming from the interests
of consumers themselves. According to the law if a consumer has got a
talon, he can return any good over a week. `Thus, a new institution is
being formed, which undoubtedly will finally lead to the positive
result’, – Armenian premier said.