Author: Hovhannisian John

                                        Friday, 
Yerevan Shrugs Off Azeri Offer Of `Autonomy' For Karabakh
Armenia - Eduard Sharmazanov, spokesman for the ruling Republican
Party, at a news conference in Yerevan, 14May2017.
A senior Armenian official has dismissed as unserious Azerbaijan's
latest offer to grant a high degree of autonomy to Nagorno-Karabakh.
A top aide to Azerbaijani President Ilham Aliyev reportedly said this
week that Karabakh could enjoy a greater degree of self-rule than it
had in Soviet times if Azerbaijan regains control over the disputed
territory. Ali Hasanov said Baku would also guarantee the security of
its predominantly Armenian population.
"I think that they know much better in Azerbaijan that such statements
are groundless and ludicrous," Eduard Sharmazanov, the spokesman for
the ruling Republican Party of Armenia (HHK), said late on Thursday.
"How can one state give some status to another?" Sharmazanov told
reporters. "The Nagorno-Karabakh Republic is a de facto independent
republic."
He argued that people's right to self-determination is one of the
principles at the heart of international mediators' exiting proposals
to resolve the Karabakh conflict.
A framework peace accord originally drafted by the U.S., Russian and
French co-chairs of the OSCE Minsk Group a decade ago calls for a
phased settlement of the conflict. It would start from the liberation
of virtually all seven districts around Karabakh that were occupied by
Karabakh Armenian forces during the 1991-1994 war. In return,
Karabakh's population would be able to determine its internationally
recognized status in a future referendum.
Armenia's leadership says that this peace formula is largely
acceptable to it.
President Serzh Sarkisian ruled out Karabakh's return under
Azerbaijani rule immediately his most recent meeting with Aliyev held
in Geneva in October. The two leaders pledged to intensify the peace
process and ease tensions on the frontlines.
The Armenian and Azerbaijani foreign ministers met in Vienna on
December 6 for follow-up negotiations which they both described as
"positive." They are expected to meet again in January.
Probe Of Reported Violence In Armenian Trial Still Not Over
 . Ruzanna Stepanian
Armenia - A chaotic scene at the trial of arrested radical opposition
members in Yerevan, 28Jun2017.
An Armenian law-enforcement agency said on Friday that it is still
investigating reports that four arrested members of an armed
opposition group were beaten up during their ongoing trial in Yerevan.
The high-profile trial stems from the July 2016 attack on a police
base in Yerevan that was launched by members and supporters of a
radical opposition group. The gunmen laid down their arms after a
two-week standoff with security forces which left three police
officers dead.
Eighteen members of the armed group went on trial in May. Four of them
claimed to have been brutally attacked by police officers immediately
after a tense court hearing on June 28.
During the hearing, two of them were removed from the courtroom after
arguing with the presiding judge and security personnel. They as well
as two other defendants told their lawyers afterwards that they were
beaten up by police officers in the court building's basement before
being transported back to their prisons.
Although the Armenian police denied the beatings, the Special
Investigative Service (SIS) pledged to investigate the
allegations. The SIS told RFE/RL's Armenian service (Azatutyun.am)
that the inquiry is still continuing.
The defendants' lawyers earlier questioned the SIS's declared
commitment to a fair and objective probe.
"Do not expect a comment from the police at this point," said Alik
Sargsian, the former chief of the Armenian police. "Let other bodies
that have a punitive role in this case explain why the inquiry has
dragged on so much."
Sargsian, who is now a parliament deputy from the ruling Republican
Party of Armenia (HHK), dismissed suggestions that the policemen
assaulted the jailed gunmen in retaliation for their colleagues that
were killed and taken hostage during the 2016 standoff.
Poll Finds Strong Support For Armenian Military
Armenia - Defense Minister Vigen Sargsian (R) inspects troops deployed
along the border with Azerbaijan, 8Nov2017.
The Armenian military remains the most trusted institution in Armenia,
according to an opinion poll conducted recently.
The Armenian branch of the U.S.-funded Caucasus Resource Research
Center (CRRC) interviewed more than 1,600 randomly chosen households
across the country in November as part of the CRRC's annual Caucasus
Barometer survey. The survey gauged public opinion in Armenia and
Georgia on a wide range of issues facing the two neighboring
countries.
According to its findings released last week, 51 percent of Armenians
"fully trust" and another 26 percent "rather trust" their armed
forces. The CRRC's previous surveys found similarly strong popular
support for the Armenian army, a sentiment that appears to reflect the
unresolved Nagorno-Karabakh conflict.
The latest CRRC poll shows that the Armenian Apostolic Church and
other religious organizations active in the country were the second
most trusted institution, with 74 percent of respondents having
confidence in them.
The poll found much lower degrees of public trust towards the
executive and legislative branches of government. In particular, only
18 percent of those polled said they trust President Serzh Sarkisian,
according to the CRRC. Public confidence in the Armenian parliament
was found to be even weaker.
Respondents were also asked questions relating to foreign
policy. Two-thirds of them said they approve, in one way or another,
of Armenia's membership in the Russian-led Eurasian Economic
Union. Accordingly, 64 percent described Russia as Armenia's
"friendliest" foreign partner.
At the same time, 55 percent of those polled voiced varying degrees of
support for Armenia's potential accession to the European Union.
Armenia Raises Income Tax For High Earners
 . Astghik Bedevian
Armenia - A tax office in Yerevan, 8Nov2017.
Armenians earning more than a 150,000 drams ($310) a month will pay
higher income taxes under new and comprehensive tax legislation that
will come into effect in January.
The Tax Code was passed by the Armenian parliament in 2016 amid strong
criticism from the opposition and even some pro-government
lawmakers. It calls, among other things, for higher taxes on personal
income, fuel, alcohol and tobacco. Critics said this will suppress
economic activity and lead to more tax evasion.
The government denied those claims. The International Monetary Fund
also strongly supported the code, saying that it will improve tax
administration and lead to a badly needed increase in public spending.
In particular, the 800-page code raised from 26 percent to 28 percent
the income tax rate for Armenians making between 150,000 and 2 million
drams a month. The tax rate for those having higher income is set at
36 percent.
According to the State Revenue Committee (SRC), the tax rises will
affect 30 percent of the national workforce. In a statement to
RFE/RL's Armenian service (Azatutyun.am), the SRC emphasized that the
tax rate for the other Armenian workers will be cut to 23 percent.
Armenia -- Economist Vahagn Khachatrian speaks to RFE/RL, 22Dec2017.
Vahagn Khachatrian, an economist affiliated with the opposition
Armenian National Congress (HAK), again criticized these changes on
Friday, saying that they will encourage private employers, who pay the
bulk of the payroll tax, to underreport their workers' wages.
Khachatrian also alleged that the Armenian authorities are keen to
stifle the middle class and even cause it to shrink in size. "This is
politically motivated, he said, adding that high earners pose a threat
to the government's hold on power.
Khachatrian noted that the year 2018 will also see the full entry into
force of a Western-backed reform of the national pension system. It
will require all employees born after 1973 to pay a higher pension
tax.
The government's aggregate tax revenue has grown steadily over the
past decade. Still, it was equivalent to just over 21 percent of GDP
in 2016, a modest proportion highlighting widespread tax evasion and
income disparity in Armenia. The government has pledged to raise that
ratio to 23.5 percent by 2022 through a major reform of tax
administration.
Reprinted on ANN/Armenian News with permission from RFE/RL
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