PRESIDENT KOCHARIAN WARNS TAX OFFICERS AGAINST FAVORITISM AND PROTECTIONISM

Armenpress
Sept 26 2007

YEREVAN, SEPTEMBER 26, ARMENPRESS: President Robert Kocharian
summoned today top officials from the State Taxation Service
(STS) to learn whether its leadership is able to meet the projected
targets. Kocharian’s press service said if the answer was "yes," the
president wondered what mechanisms it was going to apply to achieve
the objective.

Kocharian was quoted as saying that the STS’s ultimate task is to
drastically improve tax administration.

"Tax collection indices should be linked with economic growth to
constitute ‘a normal’ percentage of the overall GDP," he said,
implicating that taxes still make an insignificant portion in the
overall GDP.

Kocharian said the volume of shady economy is still big, blaming tax
officers for helping companies to avoid taxes.

Kocharian said this is not an insurmountable task, adding that a
crackdown on shady economy would result in a very tangible outcome.

"There are serious reserves and the STS should simply display
resolution and work honestly,’ he was quoted as saying.

Kocharian also demanded that tax bodies revise their modus operandi,
warning that he is going to keep a close eye on their performance.