Hayastan bloc pledges full tax refunds for small businesses, push for industrial revival

The opposition Hayastan alliance announced plans to introduce a policy of 100% tax refunds for small businesses, extending similar incentives to medium-sized enterprises, as part of a broader economic revival strategy.

Speaking at the presentation of the alliance’s socio-economic program for the upcoming parliamentary elections on Wednesday, opposition lawmaker Artur Khachatryan highlighted Armenia’s rapid post-Soviet growth in the late 1990s. “In just a few years, Armenia’s economy, industry, and infrastructure transformed so quickly that the World Bank dubbed the country the ‘Caucasus Tiger,’” he said. Khachatryan noted that during that period, Armenia experienced average annual growth of 12% and recorded positive net migration for the first time.

Referring to the administration of former President Robert Kocharyan, Khachatryan added, “We have already pulled this economy out of crisis once. Today, it is again in turmoil.”

He criticized the current economic structure as overly dependent on services and retail, with exports dominated by gold, diamonds, mining products, brandy, and tobacco. “Where is our industrial potential? Where is the high-tech industry so often touted by the authorities? And the growth they display is largely debt-driven. Over eight years, Armenia’s debt has doubled to $15 billion,” Khachatryan said, stressing that the debt burden falls on all citizens, including newborns, amounting to roughly $5,000 per person.

Khachatryan outlined the alliance’s vision, which would take effect from June 8, focusing on industrial revitalization, high-tech economic development, and fostering a competitive Armenia based on comparative advantages. The program includes the Made in Armenia initiative, targeting industry to contribute 25% of GDP through tax incentives and targeted programs, with high-tech sectors accounting for 10% of industrial output.

The opposition lawmaker said import-substitution policies would promote domestic production. “We will introduce full tax refunds for small businesses, and also for medium-sized enterprises, depending on the sector and region,” he said.

Khachatryan emphasized that tax refunds are only one aspect of the support plan, which will include large-scale, targeted assistance aimed at boosting exports and providing advisory services to entrepreneurs.

Additionally, the alliance plans to create a substantial domestic investment fund to reduce reliance on external borrowing. Khachatryan also called for a review of existing state debt to assess whether it was used for public purposes or diverted elsewhere.