YEREVAN. - Armenia’s tax policy hits entrepreneurs and as a result businessmen are fleeing the country, said expert Harutyun Mesropyan.

“For example, a businessman pays certain amount to purchase good to import it in Armenia. On the border he is asked to pay 20% of the amount. A businessman is urged to pay 20% of the amount, therefore prices for goods is increased to reclaim the amount consumed,” the expert told journalists on Tuesday.

Mesropyan considers this testifies not only to inferiority of the tax system but, moreover, discourages the entrepreneurs to develop business in Armenia. 

Vazgen Safaryan, Chairman of the Union of Native Commodity Producers, recalled that half of

AMD 650 billion taxes collected last year was obtained from the Value added tax (VAT), while 70% of VAT were collected on the border. 

Harutyun Mesropyan called official inflation figures incorrect. According to official information, rise in prices makes 9.4%. Changes of more than 450 goods are considered to calculate the average inflation.

“The list of these goods includes such items as CDs, household appliances and others which are not consumed by people with low income. When I tried to make calculations including only 50 items mostly consumed by poor people, the actual rise in prices made over 25%,” the expert said.