– During a recent meeting with customs and taxation officials president Sargsyan instructed them to be stricter to businesses. According to our information, there are some businesspeople who are complaining of this strict policy and say that it can’t go on like this.
– Our taxation field is divided into two parts. One of those parts is collected through taxation services, and the other part through customs services. I think that there are many gaps in the law connected with this field. As for being strict, I am for a stricter policy, but not for a rough policy. Every field should be considered separately in order to find out the specific problems in each field. As for my business, everything is simple in that area and there is nothing complicated. However, it has become a bad tradition when businesspeople are maintaining contact with one separate taxation inspector or official and are trying to solve their problems by other means than they should, I don’t like this thing. Even more, many businesses don’t understand the law well and many taxation inspectors are cheating them. This means that because of not knowing the law well they are trying to solve their problems by other means than established by the law. I have numerously said that there are huge losses in the taxation field, i.e. I have said the same thing that has been said by the government, opposition and people. There is a big shadow in the economy. In a word, we should improve the institutional capacity of tax administration. Also the taxation policies should be equal for everyone; I think these are the problems that should be solved now. There are separate fields where the taxation policies should be equal. It is also worth mentioning that now there are too many problems in the customs field, which are now being solved slowly. You can go and talk to people who are importing cars from abroad. This part of the customs operation used to be a closed system, a dark forest. Now everyone can say that the prices have rapidly fallen in the market of cars. It is a result of the fact that in the past importers had to pay more money, which did not go to the budget but to the pockets of some officials. There are bad things in the taxation system as well. There are, as it is said, extra payments in that system and people are made to pay taxes before they have to. The problem is that tax officials and inspectors are not interested in working in one field only.
– Do you mean that our taxation field is good for business? According to your opinion which taxes are exaggerated?
– I can speak about several directions separately, but we should clearly separate small businesses from the big ones. For example, we should pay more attention to a boutique seller because he/she works to get honorarium per day, there need to be separate approaches to separate businesses. Maybe it is better to apply stabile taxes in some places and solve the problems with VAT in other places. After researching each field we can fill up the budget by 50% without affecting those fields. All we know that certain people are discussing these facts for their personal benefits from elections to elections.
– According to some rumors in the press, there is a list of 50 businessmen who are subject to serious punishments and other businessmen are worried about this possibility. Do you think that the government may take that risk and take them out of the shadow?
– The government must do that. I am saying this as a businessman and as a citizen of Armenia. I don’t have any problems with it and thanks to God all the information concerning my accounting and other operations are written everywhere with the responsible bodies and I don’t have any problems with it. Even if I try to hide taxes, I can’t do it because everything in my business is simplified. The problem is not in this field. There are some fields such as grain import where there may be such problems. There are several companies involved in import of grain and I don’t know what they pay or what documents they form with the customs bodies, but for example with gas import everything is very clear. Whatever your prices are you will pay the same taxes anyway. It is a fact that there must not be any group of 50 or 100 businessmen who can negotiate with the government and stay in shadow. This fact should be realized and it is not by chance that one of our large businessmen said after a meeting with the president that the line and limit have been drawn. In fact the rules of the game have changed and notwithstanding what you have earned in the past you will have to comply with other rules in the future. Time will show whether our society or tax inspectors are ready for this or no. If these are just words and will not come true, they will lose the small confidence that has recently been born in the society.
– Will government officials agree not to take bribe from businesses to provide secure operations for them?
– It is a difficult thing. Our society is chronically sick. We should be able to be satisfied with what we have. Of course the salaries of officials should be raised as well. It is all about the political will, and if a decision is made, they should be decisive to do that in a duly manner. Also the society should develop because now everyone is cheating and people don’t trust each other, this is very dangerous. So shouldn’t a line or limit be drawn then? However, I can’t say whether it will be done now or no.
– What should be done with backing and sponsoring businesses?
– I think that there should be no backing.
– Is it possible?
– Nothing is impossible, but everything should be done slightly and step by step. For example, now it is the phase of university entrance exams, I wander whether our society wants not to have the system of arranging university entrance exams for their children with the help of bribe or relatives. I think no. When we are asking people about this everyone complains that we have decided to do this just at time when their children want to enter universities. Our society is not ready for that.
– Do you think that one can do business in Armenia, for example gas business, without maintaining good relations and contacts with high rank officials?
– It is very hard, but it is possible if he/she is very decisive and hard working to achieve the goal. It is clear that there are some obstacles which are not coming from the very top, but from the medium-level officials.
– If I decide to import gas, will they allow me?
– Today it is a very difficult thing to import gas. I am announcing this: you can go and import and if anyone prevents you I will protect you in the whole world and will make a noise. However, there are too many problems because the only way of importing gas is through Georgia, thus Georgia has its conditions because the way through Georgia is monopolized as well. If you can bring gas with the same price as me, I will appreciate that. It is very difficult to get the main capital. As an American businessman said, don’t ask me about my first one million, the other things I will say myself. In difference with him, I can say where my first one dollar came form. There are many ways of making business just people want easier and cheaper ways.
– We should confess that it is impossible to do anything without having someone to back you though.
– I agree with you that such thing exists and there can’t be smoke without fire. Let’s not contradict each other, OK? Certainly personal relations and contacts play a big role, but there is a limit, which is the state interests, behind which such ties have nothing to do. Smart people can always achieve their goals. But we should confess that such things are mostly a result of rumors than the reality because a wolf is not always so dangerous as it seems to be. In fact people are afraid of facing their destiny, if they come closer and take a chance, they will achieve their goals. There may be monopoly in other fields, I don’t know, but gas and grain import is not monopoly.
– What about sugar?
– I don’t know. You can ask that question to Alexanyan Samvel. I don’t know what is happening there and I don’t know whether Samvel Alexanyan is preventing anyone else from importing that product or no. If I have an opportunity, I will import, then will he ask me why I am importing that? He can’t say that, just I know that he is more professional in that field and business than me. Let anyone say that anyone wants to import gas and I am preventing that import. I will be the first one to protect him.
– What influence may the political situation have on you?
– Bad, very bad. Because I have brandy and banking businesses and those processes are very bad for my businesses. Many foreign banks have suggested to cooperate with us, but they refused after the events of March 1. Now they want to cooperate with us again. It is a natural process and everyone knows that political processes can affect the business environment.
– The government claims that in order to develop the economy investors from other countries should invest in the domestic economy? Why? Aren’t there any investors in Armenia? Why does the government expect investments from other countries while many of our businessmen are investing in other countries?
– There are several reasons. Our people like to keep their money under the pillow. Some of them keep that money for good purposes and others for bad times. This thing is characteristic to our nation and I am against this. This is a reason of the fact that there is no credibility to banks. However, our banking system is one of the best ones in the CIS region. Second, it is very bad that Armenian businessmen take their money abroad. Third, now there is lack of money in Armenia. The problem is that where money can be invested and in which fields. Our behavior in other countries is different than in our own country. Business is a serious thing and we should be serious. Business is a place where everyone wants to be but very rare people can appear.
– The opposition is going to organize a rally but the government does not let them. Don’t you think that there may be shock again?
– As far as I know they have been allowed to organize a rally in the Hrazdan stadium. Thus I wander what is the difference between the place if they have something to say. This stadium is not far from the world and they have not been told to go to another city. Why do they want to organize their rally in the Liberty square or near the Matenadaran by all means? I think they want to polarize the society and get the people’s nerves, which is impermissible. They want to take the power with the same methods as they did in 1988-1990, but the country is not the same as before. In that period the country was a weak post-soviet state and it was an outstanding issue to do that, but now there is no need for that and I think that they are using impermissible methods. On the other hand, they may want to solve some problems. In a democratic state people should be free to attend rallies, but attending rallies with wooden sticks or other things is impermissible. I wander what the difference between the places of rallies is.
– The territory is small.
– No, it is the same as the territory near the Opera house. I believe that the reason is the fact that if they conduct their rally there no one will go there because it is far and many people come to rallies organized in the center just to watch them.
– It is their right where to conduct their rally.
– No, it is not their right, their right is the freedom to ask for a place, and it is the right of the government to give that place or say that it is busy. They can complain if they are refused continuously.
– It is the 43rd time they are applying for a place.
– Let’s forget about it because there have been many changes to the law since March 1. Everyone knows that after March 1 it was very dangerous to allow rallies take place. They have made the issue of the June 20 rally a big problem. If they have something to say, they can go, gather there and say what they want. Let them suggest serious concepts. They are trying to destabilize this vulnerable stability.
– Do you mean that Levon Ter-Petrosyan does not want to see good things in this country and wants bad things only?
– I did not say that. However, I think that he does his best to destabilize the country. Simply said he wants to make a revolution, it can be called a colored revolution or otherwise, but the fact is that he wants to make a revolution in this country.
– Maybe we need that.
– What do you need that for? Do you know that revolutions push the country back? You can’t make 7-8 revolutions during 15-20 years. Revolution is a historical necessity in order to change the social and economic formation. The problem is that he is saying that he can govern better and do better. So what did prevent him to govern well in his tenure?
– If so, how can people change the government if they really want it?
– How do you know that people really want to change the government? It is a political terror since the political minority wants to make a political terror against the political majority. Are you suspicious about the fact that Ter-Petrosyan has collected 20% of votes?
– I know that there have been serious electoral violations.
– Even if you say that everything was fair and honest it will be very funny. There have been violations and it is characteristic to our society and people. We need many years in order to be able to organize normal elections. For that purpose I am comparing the elections we had in 1995, 1996, 1998, 2003 and 2008. And if we don’t see any positive development, it means we are blind. However, it is a fact that our elections are far from being ideal. Our society is the one guilty for this situation. I think that the elections of 2003 and 2008 were quite different than the elections of 1995, 1996 and also 1998. We need time to develop and have a better situation.
– Don’t you think that if one does not see the huge crowd of people complaining during rallies it means that he/she is blind as well?
– The level of poverty is 25-30% in Armenia now, thus it is normal that there are many people who complain of the situation in the country. Also, it is another issue that some politicians are trying to use that fact and manipulate their emotions. Furthermore, if the president has got 52.8% of votes it means that the other part is the group of citizens who are complaining now. It is a simple calculation. On the other hand, we need for reformations.
– Why did not they do it till now?
– You should ask that question to the ones who governed the country in the period between 1990 and 2008. Why are you asking that question to me? I don’t know, maybe they did it but very slowly.