Friday, November 2 2018 12:19
Naira Badalian

Armenian Ministry of Finance: low tax rates can not stimulate  economic growth

Armenian Ministry of Finance: low tax rates can not stimulate  economic growth

ArmInfo.Acting Finance Minister of Armenia Atom Janjughazyan does not believe that  low tax rates can stimulate economic growth. To this end, the  country's financial authorities will work on the perception of the  taxpayer. The Acting Minister said on November 2 during discussions  in parliamentary commissions of the draft state budget of Armenia for  2019.

According to Janjughazyan, it is possible that within the framework  of tax policy, the government will show a more loyal attitude to  certain types of activities. "But today these are just plans that may  be the subject of discussion in the future," he noted.

According to the financier, the long-term tax policy needs to be  structured in such a way that entrepreneurs themselves would like to  pay taxes. This, as he pointed out, can be achieved by changing the  behavior of a potential taxpayer who, having revised his views, will  come to understand that the state is no longer a shareholder.

As Atom Janjughazyan stressed, due to, among other things, paid  taxes, the state creates a favorable environment for doing business.  Consequently, in the opinion of the person in charge of firld, the  perception of "why we should pay taxes" arises for the simple reason  that an ordinary taxpayer has doubts about the targeted spending of  tax revenues of the budget. The solution to this problem, as he  noted, lies in the creation of a transparent, open, inclusive system.

To recall, in September of this year at a meeting with journalists,  the head of the State Revenue Committee of Armenia David Ananyan,  referring to his recent visit to Singapore, said: "If someone asks me  whether it is possible to apply the Singapore economic miracle in  Armenia, I will answer - definitely not." According to him,  Singapore's legislation has a very important motto - "Our people, our  taxes". In this regard, according to him, the SRC of Armenia and the  Singapore tax collection body have the opposite ideology. "I say this  in a negative sense, because we have not yet reached an ideology like  theirs. All presentation materials for them begin with the following  sentence:" We adhere to the presumption that all taxpayers accurately  fulfill their tax obligations. "That is, people formed a culture  according to which paying taxes is an element of patriotism, then the  tax authority is obliged to form such a presumption that everyone is  law- abiding taxpayers. " As for Armenia, then, according to David  Ananyan, another motto is here: "It is assumed that all taxpayers  want to avoid paying taxes, we inherited from the Soviet Union that  deserving the state is worthy of respect." 

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