THE PROBLEM OF BLACK BUDGET

The Armenian National Congress has made a statement on the state of small and medium-sized businesses in Armenia. The statement runs: “As it was expected, and the Popular Movement’s has warned in its documents, the struggle of the regime against the so-called “black economy” was but an attack on small and medium-sized businesses, and indirectly on the entire population. The heads of the bandit state cannot influence the businesses of the oligarchs based on illegal monopolies who are its pedestal, and especially their own businesses. Evidence to this is the recurrent anti-popular step of the regime to make amendments to the law on cash machines. According to the law, from January 1, 2009 the use of cash machines on clothes markets becomes obligatory. At the same time, it is foreseen to apply more severe sanctions. In this connection, the Armenian National Congress states: a. Armenia is facing the necessity for large-scale tax reforms underlying which should be the right choice and logical succession of priorities. Those reforms should first of all rid of the economic monopolies stifling the economy of the country and its development, and only afterwards set to the regulation of small and medium-sized businesses. b. With dropping return on tax due to the failure of the economic policy the regime has taken the path for unprecedented tax terror against small businesses. c. Tax reforms should first of all be aimed at taxing the businesses of oligarchs which are part of the regime which has usurped power or have coalesced with it, which the present regime cannot do because the black budget needed to sustain the criminal regime is accrued in this way. Otherwise it would cut the branch on which it is sitting. In fact, the opposite tendency is seen in this sphere. As a result of the “reforms” of the government in the second quarter of 2008 the direct taxes paid by 20 major taxpayers dropped by 541 million drams compared with the first quarter. d. In the sphere of small businesses where cash machines will be introduced over 30 thousand sole proprietors are working, which is the only source of income of their families. Since no primary reforms have been carried out in taxation, they can pay the lump-sum tax. But the introduction of cash machines in this sphere will hinder their activities on the one hand, and on the other hand, will cause prices to go up. The Armenian National Congress describes this initiative of the government not as a reform but as recurrent imitation of a reform which will have a dramatic impact on thousands of families and will inflict social consequences. The Congress demands withdrawal of the bill. Otherwise, the government will prove once again that it serves the interests of the criminal oligarchy, and has nothing to do with the interests of Armenia and the Armenian people.

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