Reforms to be implemented in tax system of Armenia
The level of tax collection is not sufficient in Armenia.
Recently, the State Committee of Revenues published the Analysis of
Summarized Indices of Large Taxpayers’ Monitoring in February 2010.
Basically, positive indices were recorded for 344 largest taxpayers of
Armenia; specifically the volume of goods and services imported to
Armenia totaled AMD 53.4 billion in February 2010 that is 55.1% higher
as compared with the same period of last year. Meanwhile, the increase
of this index is conditioned not only by goods’ import for commercial
purposes, but also by import of expensive equipment to Armenia. It had
a direct impact on customs fees, which amounted to 10.9 billion in
February 2010 that is 49.9% higher as compared with the same period of
last year. Besides, the volumes of goods exported by the largest
taxpayers totaled AMD 19.8 billions in February 2010 that is 9.3bln
higher as compared with the same period of last year.
May 1, 2010
PanARMENIAN.Net –
According to official data, representatives of large businesses also
met their obligations to the state budget: the index of paid taxes and
state duties amounted to AMD 15 billion in February 2010 that is 3.8
billion higher as compared with the same period of last year. However,
Prime Minister Tigran Sasrgsyan said during a governmental session
that, according to 2009 data, the tax collection has decreased, while
the number of tax inspections has increased, specifically at small and
medium businesses, which face difficulties in opposing to the pressure
of tax inspectors. Indexes of 2009 raise concern: the total number of
inspections by tax bodies increased by 82% in 2009, while the
additional funds obtained through them decreased by 25%. It should be
noted that the government’s strategy aims to minimize personal
relations of taxpayers and tax bodies. Factually, our tax inspectors
are unable to refrain from personal contacts with business
representatives.
At the same time, the Prime Minister stated that the conditions of
business environment have improved, despite numerous shortages. And
this serves as another stimulus for the economic growth, which totaled
5.5% by the end of the first quarter. Though the proceeds of Armenia’s
344 large taxpayers from sale of products totaled AMD 143.2 billions
in February 2010 that is 19.9% higher as compared with the same period
of last year, a decrease in proceeds of 120 taxpayers was recorded
during the reported period.
Armenia’s government plans to reduce the budget deficit within several
years, as it sharply increased during the crisis period, amounting to
7.7% in GDP structure. To this end, the authorities plan to implement
reforms in tax administration that will allow bringing the state
budget deficit to its pre-crisis level – 3%. It should be noted that
first steps in this direction have been taken. The Armenian parliament
adopted the Law on Taxes in the final reading, establishing the
state’s responsibility for delays in returning of overpaid taxes to
taxpayers. Besides, under structural changes in economy, the
government plans to revise the tax base, as the ratio of taxes/GDP has
worsened by the end of the first quarter of 2010 as compared with the
same period of last year. Meanwhile, additional funds will be
attracted to promote the economy. And the private sector will shoulder
the major part of the state debt service.
The country’s government will face serious difficulties in achieving
these goals, as the current level of tax collection is insufficient,
thus, serious measures shall be undertaken to improve it, as well as
to facilitate the efficiency of the State Committee of Revenues.
Victoria Araratyan / PanARMENIAN News