Armenian President Demands Unrelenting Struggle Against Tax Corrupti

ARMENIAN PRESIDENT DEMANDS UNRELENTING STRUGGLE AGAINST TAX CORRUPTION

ARKA
April 24, 2008

YEREVAN, April 24. /ARKA/. RA President Serge Sargsyan held a working
meting with the top officials of the RA Taxation Service yesterday. The
President demanded an unrelenting struggle against corruption in the
sphere, reports the RA presidential press service.

The President demanded the creation of equal conditions for
all economic entities and determination in battling bribery and
protectionism.

According to S. Sargsyan, successful implementation of the ambitious
programs presented to the public is first of all conditioned by the
taxation authorities’ competitiveness. "If they fail to be competitive,
we cannot have competitive economy," stated the President.

The President added that the activities of taxation and customs
bodies and the accomplishment of tasks set to them will remain in
the center of his attention. S. Sargsyan said he does not want the
working meeting, which are to be regularly held at the presidential
residence, to be viewed as an occasion to insult or dismiss anyone.

"The goal of the meetings is clear – the last year has seen
parliamentary and presidential elections, when election programs were
presented to the public. It is time now for the programs to become
reality," said the President.

According to S. Sargsyan, the pivot of the programs is that the
experience gained over the past seven years allows the country to
launch reforms of the second generation.

The RA President pointed out the goal, namely, specifying whether the
government bodies are ready for reforms of the second generation and
"if so, let us move forward together."

S. Sargsyan stressed a clear answer to the question as to why the
work should be started with the taxation and customs sectors.

"Any reform must be accompanied by economic growth and improvement
of the population’s living conditions. We have no right to say:
dear people, to tighten your belt, wait three, four or five years,
until we carry through the reforms of the second generation – then
you will live better,"

The RA President pointed out the taxation and customs authorities’
primary responsibility for economic growth, better competitiveness,
budget execution. S. Sargsyan inquired about the system’s problems,
possible solutions as well as about inadmissible phenomena and ways
of eradicating them.

"The State Taxation Service must conform to its name and essence. We
all must realize that the Taxation Service is supposed to render
services to our society, government bodies and business. If we succeed,
I think we will accomplish our principal task," Sargsyan said.

The President warned against thinking of everybody as a potential
tax-dodger, while the authorities demand tax payment. He pointed
out that the Government is a partner of business, roughly speaking,
it has a share in business, its share being taxes.

"We must be interested in business development and in the increase
of our share in it, which will enable us to redistribute the state
budget," the President said.

Chief of the RA Taxation Service Vahram Barseghyan, as well as
chiefs of departments, presented the plans to reduce shadow economy
and corruption and improve tax administration. They pointed out that
the work requires amendments to relevant legislation and improvement
of procedures.

Barseghyan laid emphasis on proper document circulation, which
will allow taxation bodies to record the real profits. Otherwise,
corruption control is impossible. The participants in the meeting also
pointed out the necessity for structural reforms and introduction of
electronic control.

RA Prime Minister Tigran Sargsyan qualified the improvement of tax
administration as a priority task for 2008 and as a pivot of reforms.

Attending the meeting were also RA Vice-Premier, Minister of
Territorial Administration Armen Gevorgyan, Chief of the RA
Presidential Administration Hovik Abramyan, RA Minister of Finance
Tigran Davtyan and RA Minister of Economy Nerses Yeritsyan. -0–