IT IS TIME WE SHIFTED TO PROGRESSIVE TAX
A1+
[03:33 pm] 16 February, 2009
Armenian authorities do not carry out a key proposition of the RA
Constitution. The Republic of Armenia is a social country but today’s
tax policy doesn’t contribute to the establishment of a social country.
"The shadow economy enables them to amass a fortune, buy elite flats in
Northern Avenue, islands, rest homes and Hammers for their bodyguards,
but they never pay property tax," says Movses Aristakesyan, President
of the NGO "Center for Economic Rights".
Movses Aristakesyan thinks it is high time we shifted to
a progressive tax. "The profit tax is fixed 20 percent for big
and small businesses. Logically, the entrepreneur will enlarge his
business and show great losses. The more profit the company has,
the higher taxes it will pay, provided that the progressive tax is
applied. It will become a guarantee for a social partnership. But to
achieve this result, we must start from amending the tax on property."
Movses Aristakesyan notes that the amendments to the Law on Value
Added Tax (VAT) have loopholes stemming from the interest of big
businesses. While the methods applied against small businesses are
rather tough.
If a company has a circulation of 58.35 million drams and doesn’t
step the threshold, it acts beyond the law as it doesn’t pay the
VAT. p> To remind, the parliamentary majority voted for the recent
legislative amendments with the exception of the Heritage faction. p>
On the other hand, the coalition voted for the fixed payments that
did not derive from the interests of big businesses, including those
of the Prosperous Armenia Party (BHK), says Aristakesyan.
"Hayastan" trade centre pays a tax 154 million drams and ranks the
489th on the list of great taxpayers. But everyone knows that the
centre brings vast incomes to the owners.
Remind that the center is owned by Hayrapetyans who are BHK members.
"Hrazdan" trade center owned by Rafael-Tatev Ltd is the 347th on the
list of taxpayers and Malatia fair-the 128th.
"Given the present economic growth when the import increases by 4.5%
tax payments continue to lessen. It means the economic growth doesn’t
boost profits," says Movses Aristakesyan.