YEREVAN, May 18. /ARKA/. Armenia’s informal economy is estimated at $2.5-$4 billion, economist Artak Manukyan said during a discussion organized today by the Club of Economic Journalists. He said according to some estimates, the informal sector makes 22% of the total economy, while according to estimates based on Schneider’s methodology it is 40%.
“As a result, we can say that the shadow turnover is estimated at $2.5-4 billion, and given political will and a correct positioning of the authorities, some 30% of informal economy can be brought to the taxation net in a short period of time,” Manukyan said.
In his words, this means that in a year it will be possible to generate about $180 million in additional income.
He also argued that the government should grant tax amnesty against the background of public discontent and calls for ensuring equality. According to him, in the wake of the change of power, the society is actively demanding restoration of justice and bringing to the legal tax field those who have evaded taxes and worked in the shadow sector to this day.
“The tax amnesty should be granted cautiously, step by step, so that those working in the shadow are able to gradually legalize their businesses without losing them,” Manukyan said.
According to the economist, this will allow the business to self-clean, legalize and work in the legal field. At the same time, he noted that the fight against the shadow sector could lead to higher prices for goods, which can be neutralized by the real and fair competition.
According to him, it is very important to understand that such steps can not be implemented in the short term.
“If the investments are channeled into education, science and healthcare, it will lead to the development of human capital that will trigger economic growth,” Manukyan said, stressing that this will allow the residents of the country to feel all the changes. -0-
18:18 18.05.2018