“If in 2012 tax/GDP ratio comprised 17.36% this year it shall comprise 21.4% due to the new tax, the income tax which shall act as a new tax comprised of income tax and social duties. This will bring to higher decrease of shadow economy and fall a burden on ordinary citizens.” Vazgen Safaryan, head of national producers stated this during his interview. In line with the new law all the social payment burden falls on the employees which may lead to employers cutting workers. “If the salary is 120 thousand AMD the employee should increase it by 19 thousand to keep the dry balance, still not every employee shall do this, and not every employer shall demand rights:, concluded Safaryan.
