Protests seen inevitable in Armenia over crisis-driven social tension
Mass protests are in store in Armenia over social
tension caused by the economic crisis, former chairman of the
country`s central bank, Bagrat Asaturian, has warned.
Asaturian, who is a supporter of the staunchly-opposition former president Levon Ter-Petrosian, said the global economic crisis has further aggravated the living standards of Armenian citizens. "The people are witnessing that the government is doing nothing to improve the situation but giving empty promises and raising taxes by the day."
Economist Andranik Tevanian concurred that a social outburst is inevitable. He emphasized that Armenia`s taxation system is making things even worse.
Under the country`s Tax Code, businesses making over $191,000 a year are required to pay profit tax of 30% to 35%, while those making less - 10-15%. Some companies have had to lay off their employees and scale down production to alleviate the tax burden. Experts say things are bound to get even worse if the authorities fail to move quickly to mitigate the crisis by using currency reserves.
According to Tevanian, whereas governments around the globe are cutting taxes, providing tax breaks and financial aid to assist companies worst-hit by the economic crunch and to retain jobs, the Armenian authorities are failing to take action.
Asaturian, who is a supporter of the staunchly-opposition former president Levon Ter-Petrosian, said the global economic crisis has further aggravated the living standards of Armenian citizens. "The people are witnessing that the government is doing nothing to improve the situation but giving empty promises and raising taxes by the day."
Economist Andranik Tevanian concurred that a social outburst is inevitable. He emphasized that Armenia`s taxation system is making things even worse.
Under the country`s Tax Code, businesses making over $191,000 a year are required to pay profit tax of 30% to 35%, while those making less - 10-15%. Some companies have had to lay off their employees and scale down production to alleviate the tax burden. Experts say things are bound to get even worse if the authorities fail to move quickly to mitigate the crisis by using currency reserves.
According to Tevanian, whereas governments around the globe are cutting taxes, providing tax breaks and financial aid to assist companies worst-hit by the economic crunch and to retain jobs, the Armenian authorities are failing to take action.
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