YEREVAN. – The extreme social polarization level is one of our society’s greatest problems, Armenia’s former Central Bank (CB) Chairman Bagrat Asatryan stated during a press conference on Friday.  

In his words, the justice factor is the most important in tax policy. “If the citizen considers that [the given] tax type is justified and it applies to everyone, he would pay. I am not saying the prostitutes should be included in the GDP and be taxed, but the shadow [economy] issue must be resolved,” Asatryan stressed.   

Reflecting on the fact that the income tax has increased in Armenia’s 2012 Draft State Budget, which means more taxes will have to be collected, former CB Chairman said: “It is not impossible to collect it.”  

“Armenia is not the country that it was five years ago. Our neighbor Georgia, which was in worse condition than us, has surpassed us, in terms of economy, in a matter of 4-5 years. The authorities need to address and resolve this problem; otherwise, we will stay behind development,” Bagrat Asatryan concluded.