ARMENIA’S ECONOMY NEEDS IMPROVEMENTS AT MICROLEVEL

PanARMENIAN.Net
April 15, 2010 – 14:48 AMT 09:48 GMT

Commenting on strengthening of control over major taxpayers, Armenian
Prime Minister Tigran Sargsyan said that along with the macroeconomic
growth, Armenia’s economy should be improved also at microlevel.

"We do not facilitate the economic micro-environment through increasing
the number of inspections, we only incite discontent of tens of
thousands businessmen with the government, which does not keep its
promises," the Prime Minister said during the April 15 session of
the government.

He added that Armenia’s economic growth is secured due to competent
macroeconomic policy pursued by the government.

Mr. Sargsyan noted that personal relations between representatives
of tax services and businessmen should be minimized in the framework
of reforms implemented by the government.

"The results of inspections carried out by tax bodies in 2008-2009 show
that their number has not decreased for small and medium businesses,
from which major part of complaints is received, as large businesses
can resist inspections," he said.

Mr. Sargsyan added that the total number of inspections increased
by 82% in 2009, while the additional funds obtained through them
decreased by 25%, and these figures "raise concern."

The Prime Minister stressed that there are some deviations in the
figures, specifically, the number of inspections at large businesses
increased by 30% in 2009, at taxpaying companies with AMD 58mln annual
turnover – by 70%, at other companies – by 250%, while the additional
funds gained as a result of inspections reduced by 2-3 times.