– Robert Kocharyan mentions the economic factor as one of the three reasons why he should return to politics. Don’t you think that the government is most responsible for the current economic situation and it may serve as a ground for the return of Kocharyan to politics?
– RA Presidents have always been in politics – both Levon Ter-Petrosyan and Robert Kocharyan. In this political field everybody chooses his own strategy. For example, Ter-Petrosyan has been silent for awhile and that was a behavior chosen by him. As of Kocharyan’s statements, I’d like to say the following. Today the three parties of the ruling coalition – RPA, PA and Legal State, are responsible for the current political, economic and social situation of the country. Moreover, RPA has been the political backup for Kocharyan as well. I think the political support that Serzh Sargsyan has is enough for the implementation of the government programs and initiatives. Robert Kocharyan and Serzh Sargsyan have always been and will always be friends. Ex-president Robert Kocharyan will provide a reliable support to current President of Armenia Serzh Sargsyan. I believe that Robert Kocharyan and Serzh Sargsyan have always been and will always be friends. Kocharyan and Sargsyan are longtime friends, brothers-in-arms and partners, people, who’ve been through a war, shared severe trials and celebrated victories. I’m confident, Kocharyan will support current president, the same way Sargsyan has been supporting him for 10 years, to enable success of our team led by Sargsyan.
– Besides Robert Kocharyan in his interview PA leader Gagik Tsarukyan also spoke about the economic issues of the country. Do you agree with his statement that “the government should not impede the functioning of the owner of a stall, or small store; they should help them enrich the state by letting them function to pay taxes to the state”?
– I fully agree with Tsarukyan’s statement because it is one of the main principles of the government to help the small and medium businesses evolve. For that purpose, our coalition government submitted to the NA a package, which was approved by the latter. We have essentially eased the tax burden for small and medium businesses. In many sectors we have switched to a fixed tax and eased the process of accounting. Moreover, our government has adopted an unprecedented decision – to forbid inspection in small and medium businesses on part of 18 inspection bodies. It means we have excluded the bureaucratic fuss and pressure on part of 18 state bodies. By doing this, we have improved the environment for small and medium businesses.
– Several MPs expressed their concerns about the budget accumulation of 2012 in the conditions of economic recession. There is an opinion that it will be done at the expense of pressure on businesses.
– Every year, when the NA discusses the state budget our MPs righteously mention that we have reserves and we have to cut the shady market and improve the tax collection process. This year when presenting the draft budget to the NA we have taken a quite serious and courageous step. We have suggested adding the balance of taxes to the GDP by 0,6%. By that we are resolving the problem, which the NA would bring up for years. First of all, we should reveal the existing reserves, which our critics and MPs mention. First of all we see these reserves in the black market. That is the reason why the NA has given the government additional tools during the past two years, which implies that the State Revenue Committee should benefit from those by improving the tax administration. Secondly, we should reveal the sectors, where we can receive profits to fill the state budget. With our colleagues in the NA we will conduct these exercises in order to create a legislative ground to bring these profits to the budget. You probably remember that our MPs were emphasizing that the businesses, which have most profits, should be taxed more than the ones with less profit. We should apply this principle as well. The ones that spend a lot of money on luxury should pay more taxes.
– During the government session the chair of the State Revenue Committee Gagik Khachatryan complained that it would be impossible to collect that much tax.
– We never put easy tasks in front of us. We set serious and difficult tasks because only the solution of these issues and tasks will bring actual progress for us.
– In countries like Armenia GDP/taxes ratio is approximately 25%. Why is in our country is figure so low – only 17%?
– It depends on what economic model this or that country chooses. There are countries, where the ratio is 40%. There are countries, where the ratio is around 20-25%. Our country has adopted a liberal model, which anticipates that the tax burden should be minimal on the economy and businesses. And this model anticipates that the ratio should be lower than in countries which adopted a higher tax collection ratio.
– Is the low ratio of GDP/taxes truly considered a result of the liberal model mentioned by you in Armenia? Doesn’t this index prove that in our country the shady market reaches high margins?
– The President of Armenia and I have mentioned that we have an objective to fight shady economy and increasing the ratio. In 2012 it is going to be a serious challenge for us. And we should be able to provide essential progress here due to our joint efforts.
– During the pre-election year, oligarchs are allowed not to pay taxes in order to provide ballots for the government. Are you planning to do so during these elections as well?
– We are planning to collect the taxes from big businesses first of all. For that purpose we should adopt a law on natural resources by the end of the year. This will provide additional taxes. We see that there are incomes in this sector. And it will be possible to fill the budget if we conduct the right policy. This is one of the key drafts that has been elaborated for the past two years. According to the World Bank experts in this sector we have a serious investment potential in this sector and these investments might annually reach 500 million USD. One of the main preconditions is that in this sector our legislation should provide the highest criteria. In the opinion of the World Bank experts, if we invest a more modern and productive mechanism of taxation we will be able to collect additional taxes. This model anticipates that in 2012 we will be able to collect 3,5 billion AMD taxes more if the international prices remain at the 20111 level.
– Don’t you think that raising the tax collection level may hit the large businesses?
– It depends on the administrative policies and fulfillment. If we say that the shadow economy is large in Armenia, it means that we have to cut it down but not hit the legal businesses. The international experience shows that the vice process happens if you provide fair and equal administrative policies as it creates fair competition environment for businesses. However, if we fail to create equal conditions and collect the taxes in a duly manner, it will hit and undermine the business, and it is where you always criticize us and you have a reason for that.
– May G. Khachatryan resign if the GDP/taxes relation is increased by 0,6% in 2012? In fact he complained that it was not realistic to collect the tax capacity the government urged them to do.
– During our discussions our ministers and heads of state institutions can express different opinions, including strengths and weaknesses. I think it is a normal environment that is necessary to make sure that people express different opinions. It is a democratic environment for discussions.
– Rumors say the reason for increasing the tax collection efforts or fair collection is connected with the elections. It is a pre-election period and they have to say that they are collecting more taxes.
– Our goal is to increase the social aids and services by 10% as a result of increasing the tax collection. Certainly the society will like this because the social direction in the budget of 2012 will be more intensive.
– There are rumors that your will be in the first place in the RPA proportional electoral list. Have there been such discussions? Have you been offered to lead the RPA electoral list?
– You know the way how the RPA organizes its work. There have not been such discussions in the RPA so far. My policy is that I must follow the decision of my party. I will do whatever my party decides.
– According to your opinion, why was the dialogue between the authorities and opposition failed?
– I think it is a normal political struggle. Everyone is fighting for gaining votes during elections. All parties have their strategy for success. We accept those strategies normally and try to show our comparative privileges to our opponents.
– Do you think it is moral that Gagik Tsarukyan does not say openly who will his power endorse during the presidential elections 2013? He has forgotten the coalition memorandum, in which it is written who candidacy he will endorse.
– I have no reasons to agree with your allegations. As you said, we have a coalition memorandum, which gives the answers to two important political questions. First, what will be the relations between the coalition government powers and that we will not compete with each other and will try to multiply our joint powers. Second, the memorandum writes that the coalition powers will endorse the incumbent president in the upcoming presidential elections. I have not reasons not to trust our coalition partners and I believe their words and actions are not different.