MIDDLE CLASS FORMED, "MIDDLE" TAXPAYER IS NOWHERE TO BE FOUND

news.am
April 29 2010
Armenia

As a matter of fact, the list of largest payers of social security
tax is not at all a surprise: natural monopolists, powerful
telecommunication companies, large energy and industrial enterprises,
commercial banks, hospitals, etc…

It should be noted, however, that the list, like that of the largest
taxpayers, shows gross disproportions. The ten largest payers ensured
19.5% of the total amount of social security taxes paid by the 1,000
largest payers.

The top 164 entities paid exactly 50% of the total amount, with the
rest 50% paid by the other 836 taxpayers. A ratio of 1:5 is obviously
indicative of the scale of disproportions.

The following conclusion can be drawn: as far as budget revenues and
social security tax are concerned, we can place all our hopes on the
largest companies alone. The fact of their ensuring a lion’s share can
only be welcomed, but the huge gap between the powerful companies and
a great many smaller economic entities casts a shadow on the situation.

As a matter of fact, the middle class, which is positioned between
the small and big businesses, is lacking in Armenia. On the other
hand, judging by the numerous luxury cars and mansions, the middle
class seems to have been formed in the country. But this class is
obviously behind others in terms of social security tax. The problem,
however, is not the "social tax burden," but the fact that the "true"
Armenian middle class, which would ensure mass employment, has not
yet been formed.