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Armenian president urges tax service to intensify fight against shadow
economy
Public Television of Armenia, Yerevan
29 Jul 05
[Presenter] Armenian President Robert Kocharyan today held a working
meeting with the leadership of the State Tax Service. The Armenian
president pointed out that the tax service has achieved significant
results in the implementation of the state budget.
The Armenian president also said that the main tasks of the tax
service are to solve current problems, improve tax administration and
fight the shadow economy. Kocharyan pointed out that progress has been
made in the process of improving tax administration, but the shadow
economy still exists.
The Armenian president instructed them to strengthen the struggle
against the shadow economy in order to ensure equal tax conditions for
everyone. The chief of the State Tax Service, Feliks Tsolagyan,
pointed out that the tax service has started fighting the shadow
economy and favouritism within its ranks.
[Correspondent] The Armenian tax service presented the Armenian
president with its six-month report on ensuring budget revenues,
improving tax administration and fighting the shadow economy.
[Kocharyan] First, the revenue part of the budget should be completely
implemented. We cannot say to the people - wait because we cannot pay
your wages for the time being since the tax service is carrying out
reforms at the moment. These are the main problems and you have to
solve them.
[Correspondent] The Armenian president considers that the second task
of the tax service is to improve tax administration. It is possible to
introduce in the tax service modern methods used by the foreign
counties and carry out civilized administration.
[Kocharyan] I think there is certain progress in this direction, but
it is not at the appropriate level and does not meet the current
requirements of the Armenian economy. And the third task is to fight
the shadow economy and favouritism. I think this issue is more
complicated than other issues and is related to the second issue, and
all these issues are the main tasks of the tax service.
[Correspondent] Kocharyan believes that macroeconomic indices testify
that there is some progress on improving tax administration, but a
survey carried out by the presidential supervisory service shows that
there is still a lot of work to do.
[Kocharyan] If we take macroeconomic indices as a basis, then you can
say that you have achieved something. We had a 10-per-cent economic
growth in the first six month and tax revenues increased by 24 per
cent. This means that this difference of 14 per cent is due to the
shadow economy. But when my supervisory service starts monitoring
various spheres, it finds out that there are more reserves, and the
measures you are taking in this direction do not meet current
requirements. These measures could ensure higher budget revenues.
[Correspondent] Kocharyan pointed out that monitoring carried out in
the transport sphere has found out that there is a shadow economy in
this sphere as well. Although a 40-per-cent growth has been registered
in the construction sphere, incomes have risen only by 12-13 per cent.
[Kocharyan] The survey showed that there is not a single sphere where
my supervisory service did not discover a shadow economy after
carrying out inspections with your participation. The shadow economy
and favouritism are our main enemies.
[Correspondent] Kocharyan instructed them to strengthen the fight
against the shadow economy and ensure equal tax conditions for
everyone.
The chief of the State Tax Service, Feliks Tsolagyan, presented the
Armenian president with a report on the first six months and with a
list of measures that were taken to solve the service's problems.
[Passage omitted: repeating the same details]
Tsolagyan pointed out that the survey carried out by the presidential
supervisory service and employees of the tax service found out that
200 employees of the tax system have links with business. The head of
the tax service said that similar monitoring will be held in the
future as well.
[Video showed the meeting]
economy
Public Television of Armenia, Yerevan
29 Jul 05
[Presenter] Armenian President Robert Kocharyan today held a working
meeting with the leadership of the State Tax Service. The Armenian
president pointed out that the tax service has achieved significant
results in the implementation of the state budget.
The Armenian president also said that the main tasks of the tax
service are to solve current problems, improve tax administration and
fight the shadow economy. Kocharyan pointed out that progress has been
made in the process of improving tax administration, but the shadow
economy still exists.
The Armenian president instructed them to strengthen the struggle
against the shadow economy in order to ensure equal tax conditions for
everyone. The chief of the State Tax Service, Feliks Tsolagyan,
pointed out that the tax service has started fighting the shadow
economy and favouritism within its ranks.
[Correspondent] The Armenian tax service presented the Armenian
president with its six-month report on ensuring budget revenues,
improving tax administration and fighting the shadow economy.
[Kocharyan] First, the revenue part of the budget should be completely
implemented. We cannot say to the people - wait because we cannot pay
your wages for the time being since the tax service is carrying out
reforms at the moment. These are the main problems and you have to
solve them.
[Correspondent] The Armenian president considers that the second task
of the tax service is to improve tax administration. It is possible to
introduce in the tax service modern methods used by the foreign
counties and carry out civilized administration.
[Kocharyan] I think there is certain progress in this direction, but
it is not at the appropriate level and does not meet the current
requirements of the Armenian economy. And the third task is to fight
the shadow economy and favouritism. I think this issue is more
complicated than other issues and is related to the second issue, and
all these issues are the main tasks of the tax service.
[Correspondent] Kocharyan believes that macroeconomic indices testify
that there is some progress on improving tax administration, but a
survey carried out by the presidential supervisory service shows that
there is still a lot of work to do.
[Kocharyan] If we take macroeconomic indices as a basis, then you can
say that you have achieved something. We had a 10-per-cent economic
growth in the first six month and tax revenues increased by 24 per
cent. This means that this difference of 14 per cent is due to the
shadow economy. But when my supervisory service starts monitoring
various spheres, it finds out that there are more reserves, and the
measures you are taking in this direction do not meet current
requirements. These measures could ensure higher budget revenues.
[Correspondent] Kocharyan pointed out that monitoring carried out in
the transport sphere has found out that there is a shadow economy in
this sphere as well. Although a 40-per-cent growth has been registered
in the construction sphere, incomes have risen only by 12-13 per cent.
[Kocharyan] The survey showed that there is not a single sphere where
my supervisory service did not discover a shadow economy after
carrying out inspections with your participation. The shadow economy
and favouritism are our main enemies.
[Correspondent] Kocharyan instructed them to strengthen the fight
against the shadow economy and ensure equal tax conditions for
everyone.
The chief of the State Tax Service, Feliks Tsolagyan, presented the
Armenian president with a report on the first six months and with a
list of measures that were taken to solve the service's problems.
[Passage omitted: repeating the same details]
Tsolagyan pointed out that the survey carried out by the presidential
supervisory service and employees of the tax service found out that
200 employees of the tax system have links with business. The head of
the tax service said that similar monitoring will be held in the
future as well.
[Video showed the meeting]