LEGISLATIVE AMENDMENTS NEEDED IN ARMENIA TO MAKE BIG BUSINESS PAY FULL AMOUNT OF TAXES

Noyan Tapan

Feb 5, 2009

YEREVAN, FEBRUARY 5, NOYAN TAPAN. Although the State Revenue Committee
adjunct to the RA government performed its major tasks in 2008, some
problems and shortcomings still exist in the system, the committee
chairman Gagik Khachatrian said when presenting the annual report on
February 4.

In his words, the taxation of importers and producers has not yet
been brought to a satisfactory level. There is some work to be done
in terms of regulating the tax registration and the circulation of
documents, and the introduction of cash registers is aimed at that. He
underlined the necessity to make big business pay the full amount of
taxes, which requires some legislative amendments.

Speaking about the customs sector, he said that the issue of
determining customs values of imported goods is urgent, and it is
necessary to establish closer cooperation with a number of structures
in order to solve this problem. "The process of receiving information
from several countries considered risky is still imperfect and
steps must be taken so as to make the fight against smuggled and
faked goods primary under conditions of the global economic crisis,"
G. Khachatrian stated.

In 2008, tax revenues of more than 615 billion drams were collected
by the Committee. The exporters were refunded 24.4 bln drams,
which exceeds the 2007 index by 10.1 bln drams. The actual growth of
revenues made 119.3 bln drams as compared with 2007, including 76.8 bln
drams collected by customs bodies and 42.5 bln drams collected by tax
bodies. The main growth of revenues was ensured at the expense of VAT –
69 bln drams, profit tax – 10.7 bln drams, income tax – 6.9 bln drams,
fixed payments – 18.1 bln drams, and customs duty – 13 bln drams.