Economist: Taxation disparity reigning in Armenia, trigerring wave of emigration

A recent revelation by Nairi Sargsyan, Chairman of Armenia’s Chamber of Auditors and economist, has sparked controversy in Armenia as he highlighted a disparity in taxation policies that may inadvertently encourage emigration over immigration.

In an interview with Armenia, Sargsyan criticized the current system, which taxes Armenian citizens working abroad while exempting foreign nationals like Indians employed in Armenia, Caliber.Az reports.

“The Armenian government imposes taxes on individuals who go abroad to work but exempts Indians working in Armenia. Consequently, an Indian worker in Armenia is not obligated to serve in the Armenian army, remains untaxed, and retains the ability to participate in elections. In contrast, a person who goes abroad for employment sends their son to the Armenian army. While residing abroad, they lose the right to vote in elections conducted by Armenian embassies or other structures but are still required to pay taxes in Armenia,” he complained.

Arguing that this discrepancy creates a disincentive for emigration and a potential "wave of emigration" away from Armenia, which already faces a low birth rate, Sargsyan said: "It turns out that we are creating favourable conditions for emigration, not immigration, which means it will put us in front of a wave of emigration to Armenia, where the birth rate is already low.”

“In addition, the Armenian government, which promised not to pry into the citizen's pocket, discloses banking secrecy, while at the same time restricting the circulation of cash, thus subjecting a person's entire life to control and blackmail. For example, they can find out about a person's use of a particular service and make it the subject of publication at a favourable moment. These changes are also made in exchange for certain grant programmes, for the sake of money they agree to pass laws that directly check those who give money, the Armenian people," the economist stated.