WHY DID THE ARMENIAN GOVERNMENT MAKE CHANGES TO TAX PACKAGE?

Tert
Nov 3 2009
Armenia

The much-discussed tax package was approved by the National Assembly
at the second reading. To discuss the package, Deputy Head of State
Revenue Committee Armen Alaverdyan met journalists today.

It is well known that after the commotion raised by MPs over the tax
package, the draft law "went back" to the government and later again
to the parliament, where the clause on presence of tax inspectors at
manufacturing plants was amended. Today Tert.am asked Alaverdyan why
the government gave up presence of a tax inspector at major factories
and manufacturing plants. Was it perhaps because of the pressure of
major businessmen in the parliament?

Alaverdyan, in responding to the question, stated that the institution
of tax inspectors is not fully approved by international organizations
either, which prefer applying other methods of control over major
businesses. Alaverdyan said a concern was raised in parliament from
discussions over the package that the presence of a tax inspector
in major factories may bring about high corruption risks, therefore,
the government changed the clause.

The initial version of the tax package planned the presence of a
tax inspector at major factories but after the clamor, the clause
was changed and the present draft law prevents the inspector from
entering the place of production and familiarizing himself with
the production process or secrets of the trade. Presently, the tax
inspector may only enter the store from where the product is brought
out to market and get acquainted with the volume of products delivered.

From: Emil Lazarian | Ararat NewsPress