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Minister Of Finance And Economy - Artsakh
Thu, Jul 24th, 2014
http://www.european-times.com/sector/minister-finance-economy-artsakh/
Impressive Economic Performance Since 1997
Spartak Tevosyan, Minister of Finance and Economy
Spartak Tevosyan, Minister of Finance and Economy, discusses Nagorno
Karabakh's impressive economic performance since 1997. He also notes
the republic's outstanding investment attractions.
European Times: Please give a brief overview of Nagorno Karabakh's
recent economic performance.
Spartak Tevosyan: The economy has been performing very well since
1997, averaging 10% growth per year. In 2013, the republic's GDP
totalled approximately EURO 310 million compared to EURO 35.6 million in 1997.
Per capita GDP is now close to EURO 2,091. In addition, the average salary
in 2013 was EURO 205.1whereas in 1997, it was EURO 24.7.
European Times: What is the tax system of Nagorno Karabakh?
Spartak Tevosyan: Nagorno Karabakh has a value-added tax of 20%, an
excise tax, an income tax for individuals at the rate of 21% of the
salary, and a profit tax of 10%. These taxes support the state budget,
which is 10 times bigger than it was in 1997. Around 24% of the budget
funds social programmes, 15.5% are for education, 6.3% for healthcare
and 3.5% for culture. During the global economic crisis, our citizens
did not suffer because the state financed social programmes. Our taxes
are low compared to other countries in the region.
European Times: Which sectors offer the most investment potential?
Spartak Tevosyan: In 2013, agriculture accounted for 14% of GDP,
industry 13.3% and construction 9.2%.
The mining sphere has developed significantly in Artsakh for the
recent years, becoming one of the most powerful subsectors of the
industry and providing 40-50% of the entire industrial product.
However, we have managed to provide the progressive development of
other subsectors of the industry as well, and in 2012-2013, the mining
sphere provided nearly 25% of the entire industrial product,
maintaining the production volumes.
We are strongly supporting the growth of the mining industry but we
are also promoting all industrial activities, including
food-processing, textiles and fabric production. In the energy sector,
hydropower has enormous potential. We have built eight small hydro
plants which provide over 70% of the country's energy needs. In 2013
we produced more than 190 million kWh. We welcome investors in the
energy sector. The construction sector is also a leading economic
driver and new systems for housing loans should stimulate the sector
further. Agriculture remains very important to the local economy, and
the tourism sector is growing rapidly. We are also promoting ICT and
the government has established the Artsakh Information-Technology
Centre as a first point of contact for ICT investors. The Artsakh
Investment Fund also supports investors.
European Times: What is your personal message to potential visitors
and investors?
Spartak Tevosyan: Our country is young but with an ancient history,
and in the last 20 years we have made impressive progress. We welcome
investors and are ready to assist them.
Thu, Jul 24th, 2014
http://www.european-times.com/sector/minister-finance-economy-artsakh/
Impressive Economic Performance Since 1997
Spartak Tevosyan, Minister of Finance and Economy
Spartak Tevosyan, Minister of Finance and Economy, discusses Nagorno
Karabakh's impressive economic performance since 1997. He also notes
the republic's outstanding investment attractions.
European Times: Please give a brief overview of Nagorno Karabakh's
recent economic performance.
Spartak Tevosyan: The economy has been performing very well since
1997, averaging 10% growth per year. In 2013, the republic's GDP
totalled approximately EURO 310 million compared to EURO 35.6 million in 1997.
Per capita GDP is now close to EURO 2,091. In addition, the average salary
in 2013 was EURO 205.1whereas in 1997, it was EURO 24.7.
European Times: What is the tax system of Nagorno Karabakh?
Spartak Tevosyan: Nagorno Karabakh has a value-added tax of 20%, an
excise tax, an income tax for individuals at the rate of 21% of the
salary, and a profit tax of 10%. These taxes support the state budget,
which is 10 times bigger than it was in 1997. Around 24% of the budget
funds social programmes, 15.5% are for education, 6.3% for healthcare
and 3.5% for culture. During the global economic crisis, our citizens
did not suffer because the state financed social programmes. Our taxes
are low compared to other countries in the region.
European Times: Which sectors offer the most investment potential?
Spartak Tevosyan: In 2013, agriculture accounted for 14% of GDP,
industry 13.3% and construction 9.2%.
The mining sphere has developed significantly in Artsakh for the
recent years, becoming one of the most powerful subsectors of the
industry and providing 40-50% of the entire industrial product.
However, we have managed to provide the progressive development of
other subsectors of the industry as well, and in 2012-2013, the mining
sphere provided nearly 25% of the entire industrial product,
maintaining the production volumes.
We are strongly supporting the growth of the mining industry but we
are also promoting all industrial activities, including
food-processing, textiles and fabric production. In the energy sector,
hydropower has enormous potential. We have built eight small hydro
plants which provide over 70% of the country's energy needs. In 2013
we produced more than 190 million kWh. We welcome investors in the
energy sector. The construction sector is also a leading economic
driver and new systems for housing loans should stimulate the sector
further. Agriculture remains very important to the local economy, and
the tourism sector is growing rapidly. We are also promoting ICT and
the government has established the Artsakh Information-Technology
Centre as a first point of contact for ICT investors. The Artsakh
Investment Fund also supports investors.
European Times: What is your personal message to potential visitors
and investors?
Spartak Tevosyan: Our country is young but with an ancient history,
and in the last 20 years we have made impressive progress. We welcome
investors and are ready to assist them.