2007-2009 PROGRAM ON DEVELOPMENT OF RA TAX SYSTEM APPROVED

Noyan Tapan
May 24 2007

YEREVAN, MAY 24, NOYAN TAPAN. At the May 24 sitting, the Armenian
government approved the three-year program on development of the tax
system of the RA in 2007-2009. The document was developed in line with
Armenia’s economuic development and the reforms being implemented by
the government in the tax system.

The program contains measures that ensure the fulfilment of obligations
assumed by the state tax service (under various programs and towards
international orgaizations) and have been developed taking into account
the best international experience of recent years. These measures
are aimed at improving the tax payer – tax body relations through
introduction of a comprehensive self-assessment system in the tax
field, updating information technologies, improving the legislation
on tax administration, insuring a growth of taxes/GDP ratio.

Deputy head of the State Tax Service Armen Alaverdian told reporters
after the sitting that the purpose of adopting this program is to
have a medium-term strategical program for developing the tax system
in line with the economic development of the country.

The program consists of five sections, the first one of which is
related to the strategy of developing the self-assessment system of
tax liabilities. Its objective is to introduce a comprehensive system
of self-assessment in the tax field, as well as to update and later
to automate the system of report development and presentation.

A. Alaverdian noted that the measures included in the section on
ensuring taxes/GDP ratio growth are aimed at improving the mechanisms
of taxation of profitable sectors, carrying out efficient work with
big tax payers, reducing the shadow sector, as well as at development
and introduction of mechanisms for VAT taxation of non-taxed sectors,
including agriculture, starting from 2009.

He said that agricultural companies with a turnover of less than 8
mln drams (22.9 thousand USD) will not have to pay taxes. Besides,
a differentiated approach will be shown to profitable branches,
including production of eggs, poultry and fish, which will be taxed
first of all. Only after this, in the words of A. Alaverdian, one
can speak about taxation of big farms.