Interview

April 14, Aravot Daily

The inhabitants of Electoral Constituency  No 10 have sent a number of questions to NA member candidate Saribek Sukiasyan with the aim to clarify his approach about some laws hindering the development of the country’s economy, as well as to define the ways-out of the heavy social-economic situation, and also steps to be taken in case of being elected a NA member for the welfare of the RA citizens.

Mr. Sukiasyan, it is known, that the companies with annual turnover of AMD 1 billion and more are obliged to be audited and pay a big amount for the mentioned service, whereas auditing does not exempt the company from tax inspections and responsibility for the arisen problems. What’s your attitude to compulsory auditing?

It is established order in the developed countries to audit the companies operating in financial market and in different spheres of business.  I think the imitation is not correct in the countries like ours, where the tax burden is heavy as it is. It is not logical, as it is an additional burden, the companies can be exempted from it. The positive conclusion of the audit in European countries exempts the companies from tax checking and administrative red tapes, whereas it is not so in our country. The principles of the modern world are understood as natural and should not be applied in the countries being on the low grade of development. We should not pretend to be walking concomitantly with the modern world, of course if we do not turn to be in funny situation. We must have proper living standard with high profits, salaries, pension in order to live in the international modern standards. Whereas with such laws we hinder the improvement of living standards in our country.  

Do you consider the application of the fixed patent fees correct or there is a necessity to make a change?

The laws applicable in the economy generally should be in conformity with the level of the country’s development. From this point of view the type of fixed tax is not only correct but necessary in our country. For being devoid of additional book-keeping expenses, extra red tapes with tax authorities it’s the best type of tax, but it is not fair. The application of the fixed tax enables the small business to make its run to become medium-size business, increase the financial turnover, and increase the salaries. After that the business entity will pass to general taxing field and pay income tax.  This is the normal way. Currently the fixed tax is substituted by patent fees that in reality is an advance payment and does not enable the business entity to make investments boldly and start business activities. The patent is advantageous for tax authorities, but neither for businessman nor for the development of Republic of Armenia.

While being a NA member your brother Khachatur Sukiasyan suggested exempting any sphere of business from tax obligations, i.e. fixing zero tax with purpose of developing the mentioned sphere, e.g. shoes, clothes production, jewelry.  Would you continue these steps to achieve the fulfillment of this idea?

I fully support the application of this model. If you want to give a chance to business people to develop their business, to achieve success in that sphere, then you should take this step. Somebody may object that budget inflows may decrease. In order not to damage it the shadow can be cut.

– Which system of values of management is acceptable for you, European, Russian, Asian or other?

– European system of values is more acceptable for me. Our country is transferring to free market economy from the socialist system. This transfer could be made quicker, but unfortunately we are still on that way. The compulsory ingredients of the European system of values are prosperous life, social warranties, i.e. quality healthcare and education and well-provided old age. They speak about this as realty, but each of us knows that these are illusions for the citizens of the Republic of Armenia and an attempt is made to feed people with them. This is one of the main contradictions of our reality. The citizens of Armenia do not need illusions, they are fed up. Efficient steps are needed to eliminate the obstacles and approach the level of the public welfare to European level.

-What’s your idea of conception of Armenia’s development? Let me formulate like this ., supremacy of RA Constitution and laws. Obligatory and unreserved implementation of laws, so that the law will never be evaded, the law will be never subordinated to bureaucratic interest. Moreover, absence of bureaucratic interests in the law. There must be equality of law application in the relations of the citizen and state. There is a great deal of documents released by the government to be submitted for approval of legislative body. The interests of citizens must be also considered in them. I consider the opinion of the structures of independent experts very important as it must assess all the draft laws to be submitted to parliament for approval taking into account both the interests of RA citizens and those of the business and the state, and they must be created by their combination and without contradicting the main law – Constitution of the Republic of Armenia. The establishment of such an expert’s center by involving lawyers, economists, and ecologists is pressing and immediate in order to provide preconditions for the rapid progress of Armenia, the rest is a matter of technics as they used to say, daily hard work, honesty and common sense.