Ar25-_Economic_Growth_Believed_To_Ensure_About_50_Of_Additional_Tax_Revenue_Planned_For_2012 by lanyuehua

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									Economic Growth Believed To Ensure About 50% Of
Additional Tax Revenue Planned For 2012
ARKA – 9/11/2011


YEREVAN - About 50% of additional tax revenue that is planned for 2012 will
perhaps come to the government budget thanks to the expected economic
growth, Armen Alaverdyan, deputy chairman of Armenia's State Revenue
Committee, said Tuesday at budgetary hearings in the National Assembly.

Armenian government has worked out some amendments to tax laws to enlarge
tax collection in 2012 by AMD 101 billion.

Alaverdyan said that the projected 4.2% economic growth would add a great
deal to budget revenue in 2012 though added that there are also some risks.

He said that the recent years' developments as well as the experience
accumulated in tax and customs administration for these years give grounds
for optimism.

"Besides, the share of receipts from large taxpayers in tax revenue grew to
55-60% within two or three years," he said.

Alaverdyan also pointed out that the expected growth in many segments of
the economy, including the processing and mining industries, will fill the
budget as well.

Speaking about risks, he said that agriculture, construction and services
sectors are unlikely to make significant contribution to the 2012 budget
revenue.

Alaverdyan also said that a clear idea about the degree of shady dealings
is needed to understand how much these sectors can add to budget revenue.

"It should be estimated in which sectors room for shady dealing is
especially large to direct administration mechanisms exactly to these
segments," he said.

Alaverdyan also pointed out companies' overpayments as another trouble. "It
means there is a separate segment of business to which we owe money."

This debt, he said, amounts to AMD 150 billion.

Speaking about the factors which can bring additional tax receipts to the
budget, he singled out administration.

However, this factor is limited, since according to international and
expert estimates, it can bring only AMD 12 billion, which makes up 0.3% of
GDP.

The third measure to be taken to enlarge tax inflow is amendment of laws.
The amendments are now being discussed in the National Assembly.

These amendments can add only 13 or 14 billion to budget revenue.

On September 29, Armenian government approved the 2012 draft budget.

The budget revenue is projected at AMD 910 billion, spending AMD1042.5
billion and deficit 132.5 billion here.

Taxes are planned to have the biggest share in the 2012 revenue - they will
total AMD 732 billion the next year.

Mandatory social payments will amount to AMD 142 billion.

In this draft budget, revenue is planned to be enlarged by 6.8% in 2012,
compared with 2011 (AMD 852.4 billion) and spending is projected to grow by
about AMD 41.5 billion. ($1 - AMD 380.47).



Economic Growth In Armenia To Add AMD 63 Billion To
Budget Tax Revenue In 2011
ARKA – 9/11/2011


YEREVAN - Economic growth in Armenia will send additional AMD 63 billion to
budget tax revenue the next year, Gagik Minasyan, chairman of the National
Assembly's financial and budgetary committee, said Wednesday at a news
conference.

Armenian government has worked out some amendments to tax laws to enlarge
tax collection in 2012 by AMD 101 billion.

"The remaining 30 billion will be ensured by administration and legislative
changes," Minasyan said.

Speaking about legislative changes, he said that they relate to social
area. In particular, taxes on expensive cars, on higher than AMD 2 million
income and excise taxes on heavy drinks will be increased.

The income tax scale will be based on a progressive principle. It means the
upper benchmark, which stood at 20% before that, will be moved up. The
government sets 25% upper benchmark for those individuals who have AMD 2-
million and higher income. Besides, it is planned to increase cost rate for
vodka by 50% leaving the lower benchmark unchanged, at AMD 500. Customs
duty on cars which cost more than $90,000 will be raised by 20%.

Minasyan stressed the importance of a legislative package related to mining
industry.

"International experience shows that the laws we used to apply in this area
barred us from full-scale taxation - mining industry could send far greater
sums to the government budget," he said.

The new legislative package will bring additional AMD 2.7 billion to the
budget.

Speaking about the tax burden that may be borne by small- and mid-scale
businesses, Minasyan said that recent years' statistical reports showed
that the bulk of additional tax receipts came from large businesses.

"And that doesn't happen by accident, since tax changes implemented in
recent years show that preferential conditions are created for small and
medium businesses and serious steps are being taken to lessen shady
dealings in large businesses," he said adding that legislative changes are
aimed at combating shadow economy.
Earlier, Armenian Prime Minister Tigran Sargsyan said that the aim of the
legislative package is to improve business environment for small and mid-
scale businesses and shift tax burden to high-income areas.

On September 29, Armenian government approved the 2012 draft budget.

The budget revenue is projected at AMD 910 billion, spending AMD 1042.5
billion and deficit 132.5 billion here.

In this draft budget, revenue is planned to be enlarged by 6.8% in 2012,
compared with 2011 (AMD 852.4 billion) and spending is projected to grow by
about AMD 41.5 billion. ($1 - AMD 382.89).

								
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