REVENUES, DUTIES AND COMPULSORY SOCIAL SECURITY PAYMENTS OF NKR STATE BUDGET INCREASE BY 25.6% IN 2008

Noyan Tapan

Jan 21, 2009

STEPANAKERT, JANUARY 21, NOYAN TAPAN. In 2008, revenues, duties and
compulsory social security payments of the state budget of the Nagorno
Karabakh Republic amounted to 17 billion 271 million drams (about 55,7
mln USD), which enabled to overfulfil the annual programmed index,
the NKR president Bako Sahakain stated at the January 21 reporting
back consulation of the NKR State Tax Service.

The 2008 revenues exceeded the revenues of the previous year by 3.5
billion drams or 25.6%. "And this increase was ensured in case when
production volumes of Base Metals CJSC – the biggest tax payer of
our republic declined because of the global crisis, as a result of
which 1.6 billion drams was not transferred to the state budget,"
B. Sahakian said.

Thanks to the work done in order to rule out the use of double
standards and different rules of game for market participants,
according to the NKR president, the tax discipline as well as the
quality of tax services, especially in trade, were considerably
improved. At the same time he noted that the tax collection process
should not become an obstacle to business activity, in particular,
development of small and medium business, which can be achieved by
creating equal conditions for all economic entities, which in its
turn will allow entrepreneurs to develop and expand production and
allocate money for solution of various social problems.

In this connection the NKR president considered it necessary to improve
tax legislation and take such measures that will first of all help
increase domestic and foreign investments in the economy. Special
attention should be paid to correct organization of control aimed at
revealing the economic entities operating in the shadow sector and
making them work in a legal way.

B. Sahakian expressed satisfaction at the fact that last year 1
billion 97 million drams was transferred to the state budget as a
result of collection of commercial tax, which ensured fulfilment of the
programmed index by 163.8%, exceeding the 2007 index more than twofold.

B. Sahakian underlined the necessity to simplify tax administration,
reduce the red tape, make the changes as accessible to economic
entities as possible, and to establish normal partnership relations
with them.

In this connection he pointed out the importance of a correct manpower
policy based on skills and high human qualities of workers. In his
words, a persistent struggle against abuses and other vicious phenomena
existing in the system should be waged, without wich it is impossible
to carry out the envisaged tasks.