Tweet
TAX CHIEF STILL SKEPTICAL ABOUT ARMENIAN BUDGET FOR 2012
Sargis Harutyunyan
Armenialiberty.org
Oct 18 2011
The head of Armenia's State Revenue Committee (SRC), Gagik Khachatrian,
continued to question on Tuesday a more than 13 percent increase in
tax revenues envisaged by the Armenian government's draft budget for
next year.
In an interview with RFE/RL's Armenian service (Azatutyun.am),
Khachatrian insisted that the SRC will have trouble collecting 101
billion drams ($270 million) in additional taxes, duties and social
security payments unless the government specifies their concrete
sources.
The 2012 budget drafted by the Ministry of Finance late last month
would raise public spending by about 5 percent to 1.05 trillion drams
($2.8 billion) in 2012. It calls for a total of 910 billion drams in
tax and other budgetary revenues.
Khachatrian openly described the tax revenue target as unrealistic as
the spending bill was approved by Prime Minister Tigran Sarkisian's
cabinet on September 29. Sarkisian dismissed his objections, saying
that the SRC can meet the target by improving the tax administration
and cracking down on the informal sector of the economy.
"I just pointed out that they should show those areas of economic
development from where those revenues can be expected so that we
... can enter the year 2012 well-prepared and know how much in revenues
to collect and from which sectors," the SRC chief told RFE/RL. "Unless
there is such a document, the risks will certainly grow."
Khachatrian indicated that his concerns have still not been addressed.
He did not comment on a package of fresh amendments to Armenian tax
legislation which the government plans to push through parliament
later this year.
Sarkisian discussed the draft amendments with the leadership of
Armenia's largest business association last week. He said that if
passed they will translate into higher tax revenues.
The tax package has not been publicized yet.
From: Baghdasarian
Sargis Harutyunyan
Armenialiberty.org
Oct 18 2011
The head of Armenia's State Revenue Committee (SRC), Gagik Khachatrian,
continued to question on Tuesday a more than 13 percent increase in
tax revenues envisaged by the Armenian government's draft budget for
next year.
In an interview with RFE/RL's Armenian service (Azatutyun.am),
Khachatrian insisted that the SRC will have trouble collecting 101
billion drams ($270 million) in additional taxes, duties and social
security payments unless the government specifies their concrete
sources.
The 2012 budget drafted by the Ministry of Finance late last month
would raise public spending by about 5 percent to 1.05 trillion drams
($2.8 billion) in 2012. It calls for a total of 910 billion drams in
tax and other budgetary revenues.
Khachatrian openly described the tax revenue target as unrealistic as
the spending bill was approved by Prime Minister Tigran Sarkisian's
cabinet on September 29. Sarkisian dismissed his objections, saying
that the SRC can meet the target by improving the tax administration
and cracking down on the informal sector of the economy.
"I just pointed out that they should show those areas of economic
development from where those revenues can be expected so that we
... can enter the year 2012 well-prepared and know how much in revenues
to collect and from which sectors," the SRC chief told RFE/RL. "Unless
there is such a document, the risks will certainly grow."
Khachatrian indicated that his concerns have still not been addressed.
He did not comment on a package of fresh amendments to Armenian tax
legislation which the government plans to push through parliament
later this year.
Sarkisian discussed the draft amendments with the leadership of
Armenia's largest business association last week. He said that if
passed they will translate into higher tax revenues.
The tax package has not been publicized yet.
From: Baghdasarian