Imitation War and Bluff in the National Assembly
Standing Committees of the National Assembly yesterday accomplished discussions on performance of the state budget 2015. Final accord with rather heated arguments was given by the Commission on Economic Affairs.
Artsvik Minasyan, RA Minister of Economy, touched upon investments, Tax Code, open sky policy, economic developments and made a few “shocking” statements. According to him rise of income tax is being much discussed, however, one shouldn’t ignore the positive point as well, in particular, there is rise in interest rates of dividends. A.Minasyan stated that profit tax and income tax essentially vary from one another and if the profit isn’t charged, it’s profitable for enterprises to pay high earnings, “The problem is not in big or small interest rates, but that of equal attitude.”
MP Khachatur Kokobelyan stated that the development of our country’s economy is conditioned by the Tax Code and tax authority shouldn’t develop it, they should only appear as experts, “The Tax Code, as a rule should settle one issue—tax reduction parallel to budget accumulation. The citizen shouldn’t be interested in any other issue.”
Kh.Koobelyan also criticized the open sky policy, which, according to him, was imitation to obscure aviation breakdown, as a result prices for air tickets have gone up, large air companies left Armenia, many flights have been eliminated due to damping of Russian companies, and presently there is considerable difference in prices while flying form Georgia and Armenia.
“I understand that as opposition you should present everything under collapse, I have also been from opposition. Give a little measurable assessments, which is the quantity of measuring destruction?” A.Minasyan resented, adding that after the announcement of open sky policy number of air carriers in Armenia has increased, and entry of a larger company is anticipated, which will be competitive for Russian air companies.
A.Minasyan blamed the MPs in criticism without numbers. “You shouldn’t decide my awareness,” Kh.Kokobelyan said. Vardan Ayvazyan, head of NA Standing Committee on Economic Affairs, expressed doubt how it may happen that last year about 1.2 million tourists visited Armenia, and consumption reduced, prices for real estate dropped as well, “They should have given the opposite effect. Why does the consumption fall? This is the biggest trick. Revenues are increasing parallel to fall of consumption tax.”
A.Minasyan conditioned reduction of consumption by drop in prices. According to him, the latter is a factor preventing economic development, “If we had certain rise in prices, you wouldn’t mention that consumption has decreased.” The Minister asked what should the expectation regarding tourism be.
“Go to Georgia, and you’ll see what it’s like,” V.Ayvazyan noted. A.Minasyan resented that Georgia’s example was being overused, “We have competitive privileges. Let’s speak of it.” According to the Minister comparison with seaside countries is not proper.
Another target for disappointment of MPs was “Armenian railways.” MP Kh.Kokobelyan complained that instead of objects handed to Russia paid us money, they take from the budget. Deputy Minister of Transport and Communication Artur Arakelyan justified that it’s the duty of RA Government to compensate transportation damages, and although volume of freight transfers decreased by about 19%, South Caucasus Railway performed its assumed investment liabilities by 102%, improved technical indicators and etc. “I’m sorry, maybe our railway is prospering,” V.Ayvazyan said with irony.
Then the “torch” of debates was handed to Armen Alaverdyan, Deputy Chairman of State Revenue Committee. Question by Kh.Kokobelyan when they’d be able to eliminate the notion of “controlling price,” which provides big opportunities for corruption, didn’t encourage the MP. He stated that clarification by controlling prices is done in case, when necessary documents aren’t submitted, for instance, these claims have been eliminated within EEU, however, such an issue exists in all the cases, when products come from Turkey, China, Korea, i.e. from countries, from where it’s impossible to clarify prices.
Vardan Ayvazyan tried to clarify from Alaverdyan why the consumption decreased and taxes—increased, and was answered that fall has been recorded by the part of turnover taxpayers, as control wasn’t implemented throughout the first six months.
Ayvazyan went on asking: on account of what? Where did the means go? What happened to the shadow? “Shadow has always been, and we should fight against it,” the Deputy Chairman said, adding that while observing structure of tax incomes, cash flow is clearly observed.
V.Ayvazyan also touched upon elimination of VAT from imported cars. According to Alaverdyan, EEU influence is timely and will be settled, and tax reduction will originate environmental issue, as we’ll turn into a cemetery of old cars.
By Gayane Khachatryan
