Marukyan Proposes to Return 50% of Taxes Paid Last Year to Certain Companies

The leader of the 'Enlightened Armenia' faction in the National Assembly, Edmond Marukyan, has raised several issues during a live Facebook broadcast and proposed solutions aimed at the government of Armenia and the Central Bank to mitigate the damage suffered by citizens and commercial organizations due to the pandemic.

"The percentage of borrowers among employees in the public and public services segments is quite significant. They have continued to work (even remotely) and are receiving their salaries, and therefore should properly fulfill their credit obligations. Conversely, many individuals and SMEs that are unable to operate due to the pandemic and state of emergency are a vulnerable group constituting about 30-35% of borrowers. There should be a clear state unified approach for this group, resulting in the freezing of their credit obligations for at least 3 months.

Regarding the banking system, I also want to mention that this is the only sector where the government 'helps' with its mechanisms and guarantees to ensure that this system operates. The state guarantees the return of deposits and, through the state budget and coercion, supports the system to make money. Essentially, the financial-banking sector, which has made approximately 300 million USD in profit in the last two years since the revolution, should be ready to suffer along with the rest of us. In this regard, the central bank needs to have a clear program to support the banking system.

Actions concerning SMEs must be implemented as soon as possible, preferably within the next 10 days. The state should compile a list of vulnerable sectors due to the pandemic and state of emergency, as well as small and medium businesses and entrepreneurs affected due to these circumstances, with research conducted in the economic field. I propose that after compiling the list, we support these individuals and companies by returning 50% of the total taxes they paid last year. I believe this is the best support for conscientious taxpayers to stand alongside them as a state during these difficult conditions. It is impossible for dishonest entities to benefit from this mechanism, as those who have not paid taxes in the shadow will naturally not receive anything from this.

We receive messages from numerous SMEs, for instance, beauty salons, cafes, private kindergartens, or service providers that have suspended their operations, yet the landlords continue to demand rent. In such cases, the landlord should be reasonable and not demand that payment from the tenant. However, many landlords also have credit and other obligations, and therefore temporary concessions should be granted to these individuals as well. It should also be emphasized that large shopping centers should not demand rent from companies and individuals conducting commercial activities in their premises during this period, as their customer numbers have also seen a sharp decline. However, it is crucial that these same shopping centers receive appropriate necessary state support due to their income drop and credit obligations.

Below is a list of certain sectors that are particularly vulnerable during the pandemic and state of emergency and require more attention: predominantly organizations providing public services, specifically:

• Beauty salons
• Restaurants
• Cafes
• Hotels, guesthouses
• Travel agencies
• Various transport/transfer service providers, including individual passenger transporters
• Laundromats
• Some food production outlets
• Private kindergartens
• Sports complexes, etc.

Naturally, this list is not exhaustive and can be extended...

We need to support all these entities. We have been contacted by various individuals engaged in migrant work in Russia, which has also led to significant remittances to Armenia circulating in both the banking system and the overall economy for many years. They are expected to leave for their external work by the beginning of April. We propose that each administrative district's management staff undertake the registration of these individuals and target state support for them. Since the applicability of the provisions regarding the impossibility of fulfilling obligations due to the influence of force majeure as defined in civil legislation is debatable in this case, an official clarification from the authorized body is necessary regarding the application of the corresponding articles. This means that the Ministry of Justice of Armenia should clarify whether the pandemic and state of emergency are considered force majeure situations or not."