PRIME MINISTER OF ARMENIA COMES OUT IN DEFENSE OF SMALL AND MEDIUM-SIZED ENTERPRISES

ArmInfo
2010-04-15 16:49:00

ArmInfo. The Government of Armenia will further response to any
complaints by small and medium-sized enterprises regarding taxation.

Prime Minister of Armenia Tigran Sargsyan said in the Government on
Thursday that the government announced at the previous meeting that
surveys were launched to reveal efficiency of tax inspections for
2008-2009 as a result of complaints of frequent inspections at SMEs.

"We must be very careful and attentive in this sphere and create
favorable conditions for SMEs. In this context, tax administration is
very important, since distrust and non-confidence in the government
are observed in this sphere, in particular," the prime minister said.

He said that the collected data are discouraging. "Thus, total number
of inspections by tax authorities in 2009 grew 82%, whereas additional
tax revenues fell 25%. However, there are certain inaccuracies in the
collected data, in particular, the number of inspections grew 82%,
including inspections at big taxpayer companies grew 30%, at the
companies with annual turnover not exceeding 53 million drams – 70%,
and at other companies – 250%. In the meanwhile, additional revenues
fell 2-3 times," he said. Tigran Sargsyan said that the ratio of
additional payments to the actually paid taxes by big taxpayers is 4
times lower than by others. This difference grew 3.8 times in 2008 and
4,6 times in 2009. "It has turned out that a softer approach has been
made to big taxpayers rather than to small ones," Tigan Sargsyan said.

The given data must be analyzed, he said, because there are evident
problems with efficient taxation and all the criticism must be levered
at the Finance Ministry that should have carried out reforms as
planned. "If necessary, we are ready to render additional assistance
since creating favorable conditions for business just through our
macro parameters is impossible. This sphere must be a target since GDP
growth mostly depends on good macroeconomic and expansionary policies.

We have made big investments in economy, which cannot but lead to
economic growth. Microenvironment needs improvement, whereas too
frequent inspections will just arouse dissatisfaction of dozens of
thousand of enterprises with the government that fails to fulfill its
promises," the prime minister said. He did not allow Gagik Khachatryan,
Head of the State Revenue Committee, to speak in defense of his policy.

T. Sargsyan said there are complaints also regarding the Economy
Ministry that made inspections at small enterprises in 2009 violating
the prime minister’s instructions. "Big companies can protect
themselves, whereas small and medium ones cannot. From now and on
this sphere will be in the focus of attention of the government and
any alarm by SMEs will become a reason for serious discussions,"
Tigran Sargsyan said.