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  • Prime Minister Of Armenia Comes Out In Defense Of Small And M

    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.
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