VAT ACCOUNTS FOR 44.1% OF TAXES AND DUTIES OF ARMENIAN STATE BUDGET IN JANUARY-MAY 2009

NOYAN TAPAN
JULY 1, 2009
YEREVAN

YEREVAN, JULY 1, NOYAN TAPAN. Taxes and duties of over 189.3bn
drams were transferred to the RA state budget in January-May 2009,
as a result of which the six-month program was fulfilled by 73.4%
and the annual program was fulfilled by 29.5%.

According to the press service of RA Ministry of Finance, VAT accounted
for 44.1% of tax and duty collection. VAT collection amounted to 83.4bn
drams, declining by 28.3% or 32.9bn drams as compared with last year’s
index. 56.7bn drams of VAT revenues was received from taxation at
the border, and 26.8bn drams – from domestic turnover of goods and
services. Revenues fron both import and domestic turnover declined.

Excise tax collection made 15.8bn drams and accounted for 8.3%
of state budget taxes and duties. In particular, 10.5bn drams was
received from taxation of excisable goods imported into Armenia,
including 4.9bn drams from taxation of imported gasoline and diesel
fuel and 4.2bn drams from taxation of imported cigarettes.

State budget revenues from taxation of excisable goods made in
Armenia amounted to 5.3bn drams, including 2.9bn drams from taxation
of domestically made cigarettes.

Excise tax collection fell by 4.1% or 1bn drams on the same period
of 2008. There was only a fall in revenues from taxation of excisable
goods made in Armenia.

In the reporting period, profit taxes made 38.4bn drams and accounted
for 20.3% of state budget taxes and duties. Profit tax revenues fell
by 2.8% or 1.1bn drams on last year, mainly due to a fall in profit
taxes paid by nonstate enterprises, nonresidents and enterprises with
foreign investments. At the same time there was a 53% growth in profit
taxes paid by financial and credit institutions.

Income tax revenues of the RA state budget amounted to 21.3bn drams,
accounting for 11.2% of taxes and duties and growing by 7.9% or 1.6bn
drams on the same period of 2008.

Customs duty revenues made more than 9.8bn drams, falling by 22.9%
or 2.9bn drams as compared to the 2008 index and accounting for 5.2%
of the state budget’s tax and duty revenues.

State duty collection made 6.6bn drams or 62.2% of the programmed
index of the first half of 2009. State duty revenues declined by 19.9%
or 1.6bn drams on the same period of last year, mainly due to a fall
in duties levied for departure of natural persons by air transport
from Armenia, licensing and state registration.

Fixed payments collected from some types of activity in the reporting
period amounted to over 8.9bn drams, exceeding by 23.3% or 1.7bn drams
the respective index of 2008. This growth was mainly conditioned
by an increase in fixed payments collected for the organization of
casino activity, the operation of game machines, the gas filling of
vehicles, the organization of trade facilities, and the activities
in public catering sector.

Simplified tax collection made 389.6m drams in January-May 2009,
falling by 85.8% as compared to the 2008 index due to the fact that
the RA Law on Simplified Tax became invalid on January 1, 2009.