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ARMENIAN TAX REVENUES UP IN 2007
By Hovannes Shoghikian
Radio Liberty, Czech Rep.
Jan 24 2008
The Armenian government successfully implemented its record-high
budget for last year by ensuring a more than 31 percent increase in
its tax revenues, Finance and Economy Minister Vartan Khachatrian
said on Thursday.
According to official statistics cited by Khachatrian, the government
collected 505.5 billion drams ($1.65 billion) in various taxes and
customs duties, compared with 385.1 billion drams collected in 2006.
Its tax revenue target for 2007 had been set at about 459 billion
drams.
Khachatrian said the State Tax Service (STS) and the State Customs
Committee exceeded that target thanks to their more efficient work
and continuing robust economic growth which the government says made
up 13.8 percent in 2007. "Thus, sufficient grounds are in place
to continue effective macroeconomic management and concentrate on
sustaining steady medium-term growth, reducing unemployment and
managing inflation," he told a news conference.
The tax revenues also rose as a share of Gross Domestic Product from
14.5 percent to 16.1 percent between 2006 and 2007. But with tax
evasion remaining widespread in Armenia, the proportion is still one
of the lowest in the former Soviet Union.
Many local companies, especially large and lucrative ones, continue to
underreport their earnings, owing to their owners' strong government
connections. The government's stated crackdowns on tax fraud have so
far primarily targeted small and medium-sized firms.
Many of them say they are being arbitrarily forced to pay higher
taxes, a claim that was denied by the STS chief, Vahram Barseghian,
on Wednesday.
The government plans to achieve a similar increase in tax revenues
this year in accordance with Armenia's 2008 state budget which calls
for government expenditure to reach a new high of 820.8 billion drams
($2.67 billion).
By Hovannes Shoghikian
Radio Liberty, Czech Rep.
Jan 24 2008
The Armenian government successfully implemented its record-high
budget for last year by ensuring a more than 31 percent increase in
its tax revenues, Finance and Economy Minister Vartan Khachatrian
said on Thursday.
According to official statistics cited by Khachatrian, the government
collected 505.5 billion drams ($1.65 billion) in various taxes and
customs duties, compared with 385.1 billion drams collected in 2006.
Its tax revenue target for 2007 had been set at about 459 billion
drams.
Khachatrian said the State Tax Service (STS) and the State Customs
Committee exceeded that target thanks to their more efficient work
and continuing robust economic growth which the government says made
up 13.8 percent in 2007. "Thus, sufficient grounds are in place
to continue effective macroeconomic management and concentrate on
sustaining steady medium-term growth, reducing unemployment and
managing inflation," he told a news conference.
The tax revenues also rose as a share of Gross Domestic Product from
14.5 percent to 16.1 percent between 2006 and 2007. But with tax
evasion remaining widespread in Armenia, the proportion is still one
of the lowest in the former Soviet Union.
Many local companies, especially large and lucrative ones, continue to
underreport their earnings, owing to their owners' strong government
connections. The government's stated crackdowns on tax fraud have so
far primarily targeted small and medium-sized firms.
Many of them say they are being arbitrarily forced to pay higher
taxes, a claim that was denied by the STS chief, Vahram Barseghian,
on Wednesday.
The government plans to achieve a similar increase in tax revenues
this year in accordance with Armenia's 2008 state budget which calls
for government expenditure to reach a new high of 820.8 billion drams
($2.67 billion).