ANNUAL OWN REVENUES OF GYUMRI INCREASE FROM 100 MLN TO 2.5 BLN DRAMS IN 6-7 YEARS

Noyan Tapan
Apr 11 2006

YEREVAN, APRIL 11, NOYAN TAPAN. 6-7 years ago the annual own revenues
of the city of Gyumri made about 100 mln drams, whereas in 2005 they
amounted to 2.5 bln drams (over 5.5 mln USD). According to Mayor
of Gyumri Vardan Ghukasian, this growth in the city revenues was
contributed by the fact that the number of land tax and profit tax
payers has significantly increased due to the urban development
programs being implemented since 2001. It was noted that the
revenues of the city budget are mainly spent on restoration of the
architectural monuments damaged by the 1988 earthquake and on asphalt
laying and repairs of Gyumri streets. V. Ghukasian said that the
mayor’s office provides the possible assistance for development of
small and medium business in Gynmri, thanks to which about 3 thousand
jobs are created in this sector annually. At the same time, there were
previously 75 thousand jobs, whereas now the number of the employed
is small since the big enterprises are not operating. With the aim
of restoring and developing the industrial capacities in Gyumri, the
mayor underlined the necessity of working out a special state program,
with the indication of local resources, opportunities and sectors, in
which the city and Shirak marz will develop. V. Ghukasian noted that
the land tax and property tax privileges, which were established by
the Armenian government for Shirak marz investors a few years ago,
are not quite efficient. In his opinion, in order to develop the
industry of Gymri, privileges (especially profit tax and income tax
ones) like those applied in free economic zones abroad should be set
for investors.