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Tax-News
Jan 2 2015
IMF Advises Armenia To Broaden Tax Base
By Tatiana Smolenska, Tax- News.com, Moscow
02 January 2015
Armenia's plan to formulate a comprehensive tax code is an opportunity
to broaden the tax base and increase revenues, the International
Monetary Fund (IMF) has said.
It said that higher tax revenues are needed to fund increased social
spending and spending on growth-enhancing infrastructure projects.
Improvements to the tax system should aim to eliminate gaps and ensure
greater equity, it said.
The IMF noted that Armenia may receive extra revenues from the
Eurasian Economic Union's (EEU) common customs pool, but EEU tariffs
are expected to decline over the medium term. It commended what it
called the authorities' "cautious approach" to evaluating the
sustainability of these additional revenues prior to incorporating
them in the budget.
The IMF said that, at present, fiscal stimulus policies are
appropriate, given the nation's low fiscal deficit, but fiscal
tightening may be needed if the outlook for the country worsens. It
noted the importance of continuing to strengthen the capacity of the
tax authority.
The comments appear in the IMF's first review of Armenia's economic
performance as part of a three-year program under the Extended Fund
Facility (EFF). The review's completion enables the release of about
USD17m, bringing total disbursements under the arrangement to USD34m.
http://www.tax-news.com/news/IMF_Advises_Armenia_To_Broaden_Tax_Base____66874.h tml
Jan 2 2015
IMF Advises Armenia To Broaden Tax Base
By Tatiana Smolenska, Tax- News.com, Moscow
02 January 2015
Armenia's plan to formulate a comprehensive tax code is an opportunity
to broaden the tax base and increase revenues, the International
Monetary Fund (IMF) has said.
It said that higher tax revenues are needed to fund increased social
spending and spending on growth-enhancing infrastructure projects.
Improvements to the tax system should aim to eliminate gaps and ensure
greater equity, it said.
The IMF noted that Armenia may receive extra revenues from the
Eurasian Economic Union's (EEU) common customs pool, but EEU tariffs
are expected to decline over the medium term. It commended what it
called the authorities' "cautious approach" to evaluating the
sustainability of these additional revenues prior to incorporating
them in the budget.
The IMF said that, at present, fiscal stimulus policies are
appropriate, given the nation's low fiscal deficit, but fiscal
tightening may be needed if the outlook for the country worsens. It
noted the importance of continuing to strengthen the capacity of the
tax authority.
The comments appear in the IMF's first review of Armenia's economic
performance as part of a three-year program under the Extended Fund
Facility (EFF). The review's completion enables the release of about
USD17m, bringing total disbursements under the arrangement to USD34m.
http://www.tax-news.com/news/IMF_Advises_Armenia_To_Broaden_Tax_Base____66874.h tml