Armenian opposition against increasing foreign debt

Armenia’s opposition Parliamentary faction Heritage is against taking on extra foreign debt to solve the economic problems the country is facing. Armen Martirosian, Chairman of the faction, attacked the decision of the country’s leadership to take a USD 1 billion loan to stabilize the situation at a press conference at the beginning of February.

“Foreign credits unfortunately disappear in corrupt state structures, and we should not leave the burden of their repayment to the next generation,” stated Martirosian. He suggested three alternatives: progressive taxation payment mechanisms, incorporating the shadow economy and big tax payers in the taxation spectrum of the country, and a special taxation mode for expensive real estate and luxury goods. For instance real estate which costs more than 1 million should be taxed in a progressive way. Martirosian suggested that 70% of Armenia’s GDP is in the hands of 30-40 families, and if they start paying taxes it will be a great advantage for the country.

The faction will submit a draft law concerning this to Parliament in the near future. Martirosian predicts that if his advice is accepted in one or two years budgetary revenues will increase by USD 1 billion.