ARMENIA ABLE TO INCREASE TAX COLLECTION AT EXPENSE OF LARGE BUSINESSES – IMF

YEREVAN, October 1. /ARKA/. Armenia can increase its tax receipts at
the expense of large businesses, head of IMF mission in Armenia Mark
Horton told reporters on Tuesday.

Horton said the Armenian government gave a renewed impetus to measures
against “black” economy, but they could not be considered “Draconian”
as some entrepreneurs call them.

The measures will not lead to increased profits as economy growth is
slowing down, and no increase of tax rates is anticipated, Horton said.

In this respect, increasing the share of tax collection from large
businesses will be the best, he said.

According to ArmStat, tax receipts amounted to 684.6 billion drams
in January-August, a 4.2% increase compared to the same period of 2013.

Armenia’s premier Hovik Abrahamyan said soon after his appointment
in April that the government will support domestic production, but
will punish toughly on “black” turnover. July the 1st was set as a
deadline for legalizing businesses. The deadline was then extended,
but the taxation policy has been toughened, and marking of goods
manufactured in Armenia became binding in particular.

According to Armenian ombudsman’s report, ‘shadow’ economy accounts
for about 35-40%. -0–