Tuesday, January 23, 2017
Armenian Tax Revenue Up In 2017
. Emil Danielyan
Armenia - The headquarters of the State Revenue Committee in Yerevan.
Armenia's State Revenue Committee (SRC) reported on Tuesday a more
than 7 percent rise in the amount of taxes and customs duties
collected by it last year.
The increase, which SRC officials have primarily attributed to
improved tax collection, helped the Armenian government to cut the
state budget deficit.
The Finance Ministry reported last week that the deficit shrank from
at least 5.2 percent of GDP in 2016 to 3.3 percent in 2017. It said
the government's overall budgetary expenditures rose by only 3.8
percent. The extra spending was fully channeled into government-funded
capital projects.
At 1.16 trillion drams ($2.4 billion), the government's tax revenue
was equivalent to almost 21 percent of GDP. The proportion is quite
low by international standards, reflecting the scale of tax evasion in
Armenia.
The tax-to-GDP ratio stood at less than 18 percent in 2012. It rose by
0.5 percentage points last year, the SRC said in a statement.
Prime MinisterKaren Karapetian praised the SRC's performance when he
met with the leadership of the national tax and customs service on
January 15. "You accomplished a lot in 2017 but you still need to
accomplish a lot," he said.
The current SRC chief, Vartan Harutiunian, is a figure close to
Karapetian. Harutiunian has repeatedly pledged to crack down on
widespread tax fraud and corruption among tax officials since he was
appointed to run the SRC in late 2016.
The International Monetary Fund praised the Armenian authorities'
"efforts to improve tax administration" already in June 2017. It said
that they have"contributed to the higher-than-projected revenue
collection."
The improvement has been particularly visible in the Armenian customs
service, which has long been reputed to be one of the country's most
corrupt government agencies. Import duties collected by it soared by
over 23 percent in 2017, according to the SRC statement.
The tax authorities were also helped by faster economic growth
estimated by the Finance Ministry at around 7 percent. Continued
growth anticipated by the government should also help the SRC achieve
a further sizable increase in tax revenue envisaged by the Armenian
state budget for this year.
The SRC can also count on additional revenue resulting from new and
controversial tax legislation that took effect on January 1. It raised
the income tax rates for Armenians earning 280,000 drams ($580) a
month and more as well as excise duties collected from alcohol, fuel
and tobacco.
The new Tax Code has been strongly criticized by opposition groups and
economic analysts critical of the government. They say that it will
push up key consumer prices and encourage private employers to
underreport their workers' wages. Government officials have defended
the higher taxes, however, saying that they are needed to boost public
spending without increasing Armenia's debt burden.
Government On Defensive Over Price Hikes
. Tatevik Lazarian
Armenia - Senior government officials attend parliamentary hearings in
Yerevan, 23Jan2018.
Senior government and Central Bank officials downplayed the impact of
recent increases in the prices of fuel and some foodstuffs in Armenia
during parliamentary hearings held on Tuesday.
The leadership of the Armenian parliament organized the hearings at
the initiative of President Serzh Sarkisian, who expressed concern
over the price hikes earlier this month. Sarkisian discussed their
possible causes at an emergency meeting with top state officials.
Some of those officials spoke at the hearings attended by not only
lawmakers but also representatives of non-governmental organizations
and opposition parties not represented in the National Assembly. Just
like Prime Minister Karen Karapetian, they insisted that the increased
prices of the essential products have not significantly pushed up the
cost of living in Armenia.
Artur Javadian, the governor of the Central Bank of Armenia, said that
consumer price inflation in the country stood averaged only 2.6
percent last year. "In terms of fiscal-monetary policy, inflation is
under control," he said, adding that it has been much higher in
neighboring Georgia and Azerbaijan.
Javadian also complained: "Inflationary expectations seem to be
intensifying for unfounded reasons, making the ongoing fiscal-monetary
policy more costly. And irrational public behavior stemming from that
will hurt the public itself."
Nikol Pashinian, an outspoken opposition leader, questioned the
official inflation rate, pointing to recent months' double-digit rises
in the prices of butter, meat and potatoes which the authorities blame
on external factors.
"Why did the authorities organize these hearings? To say that there is
no inflation in Armenia," said Pashinian.
Roland Avetisian, who leads an NGO defending pensioners' rights, also
hit out at the government. "Pensioners have a really hard time getting
by and meeting their basic needs," he said.
The prices of petrol, diesel and pressurized natural gas, used by most
vehicles in the country, went up by around 10 percent following the
entry into force on January 1 of higher excise taxes. Vakhtang
Mirumian, a deputy head of the State Revenue Committee, insisted that
these price hikes will not have a serious impact on consumers and
businesses.
Mirumian argued that gasoline now powers only a small minority of
Armenian cars and is practically not used by manufacturing firms. He
went on to play down the higher price of pressurized gas, saying that
it now equals the gas tariff that existed in 2015. The cost of public
transport and other services and goods will not rise as a result, he
said.
Diesel fuel is used by tractors and other agricultural
machinery. Hence, widespread fears that agricultural products grown in
Armenia will become more expensive.
Agriculture Minister Ignati Arakelian told the hearings that the
government may well subsidize the diesel price for villagers and wheat
farmers in particular. "A plan of subsidizing diesel fuel is already
under discussion," he said.
France's Macron Vows Continued Support For Armenia
FRANCE -- French President Emmanuel Macron (R) and his Armenian
counterpart Serge Sarkisian hold a joint news conference after a
meeting at the Elysee Palace in Paris,
France will continue to maintain warm relations with Armenia and
support it in the international arena, French President Emmanuel
Macron said after holding talks with his Armenian counterpart Serzh
Sarkisian in Paris on Tuesday.
Macron also described as "encouraging" recent Armenian-Azerbaijani
peace talks and urged the parties to the Nagorno-Karabakh conflict to
"go farther" in trying to resolve it.
"France will always be alongside Armenia," he said in a statement to
the press made at the presidential Elysee Palace.
"France will accompany you in a troubled regional environment so that
your country can conquer its future as it has always done in its
history," he added.
Macron cited "profound links" between the two nations cemented by the
existence of a sizable and influential Armenian community in
France. "I am also aware of the fight by the Armenian Diaspora in
France for the memory of the [1915] genocide and I have deepest
respect for this fight," he said.
Macron was endorsed by leading French-Armenian organizations ahead of
a second round of voting in France's April-May 2017 presidential
election. Four ethnic Armenians were subsequently elected to the
French parliament on the ticket of his Republic on the Move party.
Macron announced after the talks with Sarkisian that he will travel to
Armenia in October on a state visit timed to coincide with a summit in
Yerevan of Francophonie, a grouping of over 70 mainly French-speaking
nations. He expressed hope that the summit will give "new impetus" to
the spread of the French language in Armenia.
The 40-year-old French leader also stressed the "necessity to impart
more dynamism to our economic cooperation." He said he specifically
discussed with Sarkisian ways of boosting French investments in the
Armenian economy. "I am thinking of sectors such as tourism, renewable
energy, agriculture, logistics and retail," he said.
France - French President Emmanuel Macron (R) welcomes his Armenian
counterpart Serzh Sarkisian before a meeting at the Elysee Palace in
Paris,
For his part, Sarkisian reaffirmed his administration's commitment to
deepen Armenia's "privileged" relationship with France. "We sincerely
love and respect France and its talented people," he declared at the
joint news briefing.
"We have practically identical views on all vital issues # I mean both
the bilateral and international agenda. We espouse the same principles
and are guided by the same value system," he said.
Sarkisian went on to thank France for helping Armenia negotiate and
sign in November the Comprehensive and Enhanced Partnership Agreement
(CEPA) with the European Union. In Macron's words, the landmark
agreement reflects a "special formula" for Armenia-EU ties that was
advocated by the French government.
The unresolved Karabakh conflict also apparently featured large during
the first-ever meeting of the two presidents. France has been
spearheading, together with the United States and Russia,
international efforts to broker an Armenian-Azerbaijani peace accord.
Macron said that a long-awaited peaceful resolution of the conflict
requires "courageous decisions and compromises" by both conflicting
sides. In that regard, he hailed progress reportedly made during
Sarkisian's October 2017 meeting with Azerbaijan's President Ilham
Aliyev and follow-up talks between the Armenian and Azerbaijani
foreign ministers.
"We know how fragile the process still is and how volatile the
situation on the ground often is," said Macron. "It is therefore
absolutely essential that this renewed dialogue leads to concrete
progress."
"We will continue to closely monitor this situation and we will take,
in concert with our Russian and American partners, any initiative that
could advance the settlement process," he added.
France's Macron Vows Continued Support For Armenia
FRANCE -- French President Emmanuel Macron (R) and his Armenian
counterpart Serge Sarkisian hold a joint news conference after a
meeting at the Elysee Palace in Paris,
France will continue to maintain warm relations with Armenia and
support it in the international arena, French President Emmanuel
Macron said after holding talks with his Armenian counterpart Serzh
Sarkisian in Paris on Tuesday.
Macron also described as "encouraging" recent Armenian-Azerbaijani
peace talks and urged the parties to the Nagorno-Karabakh conflict to
"go farther" in trying to resolve it.
"France will always be alongside Armenia," he said in a statement to
the press made at the presidential Elysee Palace.
"France will accompany you in a troubled regional environment so that
your country can conquer its future as it has always done in its
history," he added.
Macron cited "profound links" between the two nations cemented by the
existence of a sizable and influential Armenian community in
France. "I am also aware of the fight by the Armenian Diaspora in
France for the memory of the [1915] genocide and I have deepest
respect for this fight," he said.
Macron was endorsed by leading French-Armenian organizations ahead of
a second round of voting in France's April-May 2017 presidential
election. Four ethnic Armenians were subsequently elected to the
French parliament on the ticket of his Republic on the Move party.
Macron announced after the talks with Sarkisian that he will travel to
Armenia in October on a state visit timed to coincide with a summit in
Yerevan of Francophonie, a grouping of over 70 mainly French-speaking
nations. He expressed hope that the summit will give "new impetus" to
the spread of the French language in Armenia.
The 40-year-old French leader also stressed the "necessity to impart
more dynamism to our economic cooperation." He said he specifically
discussed with Sarkisian ways of boosting French investments in the
Armenian economy. "I am thinking of sectors such as tourism, renewable
energy, agriculture, logistics and retail," he said.
France - French President Emmanuel Macron (R) welcomes his Armenian
counterpart Serzh Sarkisian before a meeting at the Elysee Palace in
Paris,
For his part, Sarkisian reaffirmed his administration's commitment to
deepen Armenia's "privileged" relationship with France. "We sincerely
love and respect France and its talented people," he declared at the
joint news briefing.
"We have practically identical views on all vital issues # I mean both
the bilateral and international agenda. We espouse the same principles
and are guided by the same value system," he said.
Sarkisian went on to thank France for helping Armenia negotiate and
sign in November the Comprehensive and Enhanced Partnership Agreement
(CEPA) with the European Union. In Macron's words, the landmark
agreement reflects a "special formula" for Armenia-EU ties that was
advocated by the French government.
The unresolved Karabakh conflict also apparently featured large during
the first-ever meeting of the two presidents. France has been
spearheading, together with the United States and Russia,
international efforts to broker an Armenian-Azerbaijani peace accord.
Macron said that a long-awaited peaceful resolution of the conflict
requires "courageous decisions and compromises" by both conflicting
sides. In that regard, he hailed progress reportedly made during
Sarkisian's October 2017 meeting with Azerbaijan's President Ilham
Aliyev and follow-up talks between the Armenian and Azerbaijani
foreign ministers.
"We know how fragile the process still is and how volatile the
situation on the ground often is," said Macron. "It is therefore
absolutely essential that this renewed dialogue leads to concrete
progress."
"We will continue to closely monitor this situation and we will take,
in concert with our Russian and American partners, any initiative that
could advance the settlement process," he added.
Press Review
"Haykakan Zhamanak" reports on the continuing increase in fuel prices
in Armenia. The paper notes that the same prices remain unchanged in
Russia, a country from which Armenia imports the bulk of its petrol
and diesel. It also says that higher excise taxes, which went into
effect on January 1, alone could not have pushed up the prices of fuel
and some food products.
"Hraparak" comments on attempts by some of Armenia's major opposition
groups to revitalize themselves. The paper points to protests staged
or planned by the Yelk alliance, Levon Ter-Petrosian's Armenian
National Congress (HAK) and Zaruhi Postanjian's Yerkir Tsirani
party. "No other oppositionists seem to be around," it says. "Seyran
Ohanian, Vartan Oskanian and Raffi Hovannisian do not even make
statements through the media. Zhirayr Sefilian and Andrias Ghukasian
are in jail. Paruyr Hayrikian is buoyed by Armenia's agreement with
the European Union and has opted for a vow of silence." This leads the
paper to conclude that regime change in Armenia could only be the
result of government infighting, rather than a popular movement.
In an interview with "Zhoghovurd," a Russian commentator, Modest
Kolerov, predicts that President Serzh Sarkisian will become prime
minister after serving out his final presidential term in
April. "Russia has received such signals from Armenia," he claims. "I
will be very surprised if Serzh Sarkisian does not become prime
minister. That would be tantamount to his resignation and departure
from power." Kolerov also insists that Moscow does not regard Prime
Minister Karen Karapetian as "Russia's man in Armenia."
"Zhamanak" says that government loyalists' claims that Serzh Sarkisian
is "irreplaceable" pose a "threat to Armenia's national security."
"The problem here is not Serzh Sarkisian but his irreplaceability,"
explains the paper. "Speaking of anybody's irreplaceability means
exposing Armenia's number one target [to its enemies.]"
(Tigran Avetisian)
Reprinted on ANN/Armenian News with permission from RFE/RL
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