ARKA News Agency
July 29 2005

24% INCREASE IN BUDGET TAX REVENUES IN ARMENIA IN 1ST HALF OF 2005
POSITIVE RESULT: ROBERT KOCHARYAN

YEREVAN, July 29. /ARKA/. A 24% increase in Armenia’s budget tax
revenues was recorded in the 1st half of 2005, which is a positive
result, RA President Robert Kocharyan stated at a working meeting
with the top executives of the RA Taxation Service. The President
made a positive appraisal of the Service’s activities, pointing out
that 10% economic growth rate was recorded in Armenia in the 1st half
of 2005, and, compared with the 24% increase in tax revenues, a 14%
difference is formed, which means that this amount is not any longer
part of the shadow economic sector. According to the President, the
RA Taxation Service has made progress in replenishing the budget
revenues. “The resolution of current problems is a law, and no
bargain can be made here,” the President said. However, inspections
conducted by the Presidential Supervisory Changer showed that this
system has much more reserve. Kocharyan pointed out that the
inspections of the transport sphere and mine operation showed that
the shadow is very large. The President pointed out that a 40%
increase was recorded in the construction sphere, whereas tax
revenues do not exceed 12-13 per cent. According to Kocharyan, no
sector in Armenia’s economy is free of shadow now. “Here I can see a
field where protectionism and clan system are our major enemies,” the
President said. He proposed intensification of struggle against the
shadow sector for the creation of equal taxation conditions. “I do
not consider your activities in this direction satisfactory from the
point of view of determination. The results are not bad, but they can
hardly be considered satisfactory,” Kocharyan said. He emphasized the
importance of improving tax administration, studying foreign
experience, introducing modern methods and implementing civilized
administration. In this context Kocharyan pointed out the importance
of an agreement signed with the USAID for five years. P.T. -0–