THE SPEECH OF NKR PRESIDENT

Azat Artsakh Daily
21 Jan 09
Republic of Nagorno Karabakh [NKR]

Dear attendees, The State Tax Service plays an important role in
the development of the economy of our republic. The reputation of
our state from the perspective of launching economic activities and
the confidence of investors in it depend to a large extent on your
effective work. I would like to mention that within the reporting
period serious work has been done within the system of the state tax
service, which overall I evaluate as positive. Appropriate figures
reflect tangible quantitative and qualitative changes have taken place.
In the year of 2008 the total volume of state budget incomes, duties
and obligatory social welfare payments has constituted 17 billion
271 million AMD, which enabled to ensure the over-implementation of
the annual plan assignment. The volume of these inflows surpasses the
same figures of 2007 by 3,5 billion drams or by 25,6 percent. And this
is taking place against the background of the current international
financial crisis due to which the biggest taxpayer of our republic the
"Base Metals" closed joint stock company has reduced its industrial
production volumes thus de priving state budget of 1,6 billion dram
fund inflow. The targeted efforts to eliminate double standards
and different game rules for the market participants resulted in
substantial improvement of the tax discipline, as well as the level
of tax service, particularly in the sphere of trade.

At the same time it should be always kept in mind that that tax
collection process should not be an obstacle for entrepreneurial
activities, especially for the development of small and medium size
businesses. This can be achieved only by creating equal conditions
for all business entities thus providing entrepreneurs an opportunity
to develop and enlarge their business and direct resources to solve
different social problems. In this regard I consider necessary
further improve tax legislation and carry out measures that will result
in increasing the volume of foreign and domestic investments. Special
attention should be paid to proper organization of supervision directed
to reveal shadow economic entities and bring them to legal field.
It is gratifying that in the previous year the state budget received 1
billion 97 million drams as trade tax, which is the fulfillment of the
set goals by 163,8 percent and is more than twice the corresponding
figures of 2007. This fact depicts the efficiency of the measures
taken against shadow phenomena. The introduction of cash registers
has also contributed to th is efficiency. This in its turn improved
the standards of service. To improve the functioning of the system it
is necessary simplify tax administration as much as possible, decrease
unnecessary bureaucratic procrastination, make available the introduced
changes to economic entities, establish normal partnership with them.
Within this context I consider important carry out proper cadre
policy based on professionalism and moral qualities of employees. A
persistent and continuous struggle should be waged against violations
and other negative phenomena without which it will be impossible to
fulfill tasks put in front of the system.

These tasks of 2009 will be numerous and various too. I would like
to be confident that you will do everything possible to organize the
work of the system in an effective way. The authorities in their turn
will assist you in every possible way and will keep in the spotlight
this important sphere the problem it faces. Thank you.