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MINING CONCERNS: ENVIRONMENTALISTS SAY NEW ENTRAILS CODE ALLOWS FOR EXCESSIVE PROFITS
By Gayane Lazarian
ArmeniaNow
27.06.11 | 14:14
Hakob Sanasaryan (left), Ashot Yeghiazaryan
Armenian environmentalists have expressed their concerns over the new
Entrails Code approved by the National Assembly in the first reading
that they argue enables mining companies to receive excessive profits.
They also claim that the new legislation simplifies and accelerates
licensing procedures for mining operations and protest the use of
the word ~Spiles~T in reference to ~Swastes~T.
Union of the Greens Chairman Hakob Sanasaryan says that presenting
wastes as ~Spiles~T allows mining companies not to pay taxes to the
state for placing wastes in the environment.
~SThe new code, in particular the laws ~SOn the rates of environmental
payments~T and ~SOn wastes~T have no mention of industrial wastes. In a
programmed manner, industrial wastes are removed from the tax field,~T
says Sanasaryan. ~SThe mining industry has become a monopoly of state
officials. Their role here is huge.~T
(Officials in Armenia have routinely discarded the claim regarding
their extensive business interests in the mining sector. At the same
time, the government views mining industry development as important
for the general economic growth of the country).
Tailings of the mining sector are considered to be first-category
waste. These wastes are considered to be the second most dangerous
for health after radioactive elements. According to Sanasaryan, only
if the state taxes the tailings of the Kajaran mine in the south of
Armenia it will annually get an additional 760 million drams (more
than $2 million) in taxes.
Coordinator of the expert group of the ARF Dahsnaktsutyun faction Ashot
Yeghiazaryan says that legislative changes cannot solve the problems
that exist in this area as corruption in the sphere looms large.
"It is desirable that the 'tax burden' should make 80 percent of the
profits of mining companies, so that their owners get only 20 percent,
and not 100 percent and larger excessive profits, because the entrails
are owned by the state, and the state has the right to receive its
income, the rent," he says.
According to Yeghiazaryan, mines are different in terms of their
geographical position, profitability, and, therefore, the taxation
norm should be differentiated as well. However, the expert contends,
in today's conditions the government is unable to make this estimation.
"There is only one right way - to set up a state-run enterprise, which
will engage in the exploitation of metal resources," he concludes.
From: A. Papazian
By Gayane Lazarian
ArmeniaNow
27.06.11 | 14:14
Hakob Sanasaryan (left), Ashot Yeghiazaryan
Armenian environmentalists have expressed their concerns over the new
Entrails Code approved by the National Assembly in the first reading
that they argue enables mining companies to receive excessive profits.
They also claim that the new legislation simplifies and accelerates
licensing procedures for mining operations and protest the use of
the word ~Spiles~T in reference to ~Swastes~T.
Union of the Greens Chairman Hakob Sanasaryan says that presenting
wastes as ~Spiles~T allows mining companies not to pay taxes to the
state for placing wastes in the environment.
~SThe new code, in particular the laws ~SOn the rates of environmental
payments~T and ~SOn wastes~T have no mention of industrial wastes. In a
programmed manner, industrial wastes are removed from the tax field,~T
says Sanasaryan. ~SThe mining industry has become a monopoly of state
officials. Their role here is huge.~T
(Officials in Armenia have routinely discarded the claim regarding
their extensive business interests in the mining sector. At the same
time, the government views mining industry development as important
for the general economic growth of the country).
Tailings of the mining sector are considered to be first-category
waste. These wastes are considered to be the second most dangerous
for health after radioactive elements. According to Sanasaryan, only
if the state taxes the tailings of the Kajaran mine in the south of
Armenia it will annually get an additional 760 million drams (more
than $2 million) in taxes.
Coordinator of the expert group of the ARF Dahsnaktsutyun faction Ashot
Yeghiazaryan says that legislative changes cannot solve the problems
that exist in this area as corruption in the sphere looms large.
"It is desirable that the 'tax burden' should make 80 percent of the
profits of mining companies, so that their owners get only 20 percent,
and not 100 percent and larger excessive profits, because the entrails
are owned by the state, and the state has the right to receive its
income, the rent," he says.
According to Yeghiazaryan, mines are different in terms of their
geographical position, profitability, and, therefore, the taxation
norm should be differentiated as well. However, the expert contends,
in today's conditions the government is unable to make this estimation.
"There is only one right way - to set up a state-run enterprise, which
will engage in the exploitation of metal resources," he concludes.
From: A. Papazian