IMF RECOMMENDS THAT ARMENIA EXPAND TAX BASE

Interfax News Agency
Russia & CIS Business and Financial Newswire
June 19, 2006 Monday 1:56 PM MSK

The International Monetary Fund (IMF)

is recommending that Armenia expand its tax base and improve tax
collection, Rodrigo de Rato, IMF managing director, told reporters
in Yerevan.

The relationship between budget tax revenue and GDP in Armenia is the
lowest in the region, he said. This figure improved slightly to 14.3%
of GDP in 2005, however the government needs to work on this, he said.

De Rato also underscored the important of transparency and improving
budget spending. Special attention should be paid to improving social
infrastructures in rural area, including in education and healthcare,
he said.