Does Armenia need "tax vacation"?

PanARMENIAN.Net - "In current situation the Armenian Government must land a helping land to local manufacturers," the Head of Armenian Manufacturers Union Vazgen Safaryan told a news conference on Friday.



Vazgen Safaryan suggested reducing VAT from 20% to 16 - 17%, and to 15% for small and medium-sized businesses. " Similarly, Russia plans to lower the VAT from 17% to 13%. We must adopt the practices of developed countries by switching from indirect taxes to direct ones," he noted, citing the example of USA where total share of taxes comprises 52,8%.



"The government should take drastic measures against unfair importers who turned the upsurge in the exchange rate to their benefit by raising prices. On the opposite side, if tax vacations are introduced in Armenia, the country will not be able to provide 940 billion budget 78,9% of witch are formed from tax proceeds," Safaryan concluded.