ARMENIA TO FACE MAJOR CHALLENGES IN COLLECTING TAXES IN 2009

ARKA
Feb 4, 2009

YEREVAN, February 4. /ARKA/. Armenia is going to face major challenges
in collecting taxes this year, RA Prime Minister Tigran Sargsyan said
today, hearing Armenian ministries’ reports on 2008 results.

"We are quite aware that 2009 is going to be the toughest year for
us, with the global crisis changing the situation and causing major
hurdles in tax collection," the premier said, adding the government
must stick to its tax collection program.

Sargsyan pointed out difficulties in executing reforms in the current
harsh situation.

"Reforms are better carried out in more prosperous times," Sargsyan
said, adding the strained economic situation hinders execution
of reforms.

The only hope is that the Chairman of the RA State Revenue Committee
shares the prime minister’s concerns and is well aware of oversights
is the committee’s work.

"Without other agencies’ help, the State Revenue Committee will
not be able to shoulder the heavy burden," the prime minister said,
stressing the need for joint efforts to weather the crisis.

According to Armenia’s 2009 budget, receipts and expenditures are
to total 905.4bln drams and 945.4bln drams respectively, with the
deficit amounting to 40bln drams.

Tax proceeds are expected to reach 727.5bln drams. The fixed dollar
exchange rate is 303.69 drams per $1.

In 2008, tax proceeds totaled 598.8bln drams. ($1 – 305.19 drams).