NKR STATE BUDGET TAX INCOMES EXCEEDED PLANNED INDICES

DeFacto Agency, Armenia
Feb 5 2007

"The considerable growth of cash receipts to the Nagorno-Karabakh
Republic state budget has been mainly provided at the expense of the
growth of the tax incomes – Value Added Tax, profit tax, income tax,
trade tax, fixed tolls", the Head of the State Tax Department under the
Nagorno-Karabakh government Hakop Kagramanian stated in an interview
with Azat Artsakh newspaper, REGNUM Information Agency reports.

In his words, the fact that the VAT has increased by 85, 1 % as
compared with the last year is conditioned by the growth of GDP,
tax income, while the growth of the trade tax – by strengthening the
control: as a result of the inspections 400 millions additional tax
obligations were proposed. In 2006 the state budget’s tax incomes
exceeded the planned indices by 783 millions 850 thousand drams.

No drastic changes have been provided in the tax policy current year.