Economic growth believed to ensure about 50% of additional tax revenue planned for 2012
10.11.2011,
00:37
About 50% of additional tax revenue that is planned for 2012 will perhaps come to the government budget thanks to the expected economic growth, Armen Alaverdyan, deputy chairman of Armenia’s State Revenue Committee.
YEREVAN, November 9. /ARKA/. About 50% of additional tax revenue that is planned for 2012 will perhaps come to the government budget thanks to the expected economic growth, Armen Alaverdyan, deputy chairman of Armenia’s State Revenue Committee, said Tuesday at budgetary hearings in the National Assembly.
Armenian government has worked out some amendments to tax laws to enlarge tax collection in 2012 by AMD 101 billion.
Alaverdyan said that the projected 4.2% economic growth would add a great deal to budget revenue in 2012 though added that there are also some risks.
He said that the recent years’ developments as well as the experience accumulated in tax and customs administration for these years give grounds for optimism.
“Besides, the share of receipts from large taxpayers in tax revenue grew to 55-60% within two or three years,” he said.
Alaverdyan also pointed out that the expected growth in many segments of the economy, including the processing and mining industries, will fill the budget as well.
Speaking about risks, he said that agriculture, construction and services sectors are unlikely to make significant contribution to the 2012 budget revenue.
Alaverdyan also said that a clear idea about the degree of shady dealings is needed to understand how much these sectors can add to budget revenue.
“It should be estimated in which sectors room for shady dealing is especially large to direct administration mechanisms exactly to these segments,” he said.
Alaverdyan also pointed out companies’ overpayments as another trouble. “It means there is a separate segment of business to which we owe money.”
This debt, he said, amounts to AMD 150 billion.
Speaking about the factors which can bring additional tax receipts to the budget, he singled out administration.
However, this factor is limited, since according to international and expert estimates, it can bring only AMD 12 billion, which makes up 0.3% of GDP.
The third measure to be taken to enlarge tax inflow is amendment of laws. The amendments are now being discussed in the National Assembly.
These amendments can add only 13 or 14 billion to budget revenue.
On September 29, Armenian government approved the 2012 draft budget. The budget revenue is projected at AMD 910 billion, spending AMD 1042.5 billion and deficit 132.5 billion here.
Taxes are planned to have the biggest share in the 2012 revenue – they will total AMD 732 billion the next year.
Mandatory social payments will amount to AMD 142 billion.
In this draft budget, revenue is planned to be enlarged by 6.8% in 2012, compared with 2011 (AMD 852.4 billion) and spending is projected to grow by about AMD 41.5 billion. ($1 – AMD 380.47). -0-
Armenian government has worked out some amendments to tax laws to enlarge tax collection in 2012 by AMD 101 billion.
Alaverdyan said that the projected 4.2% economic growth would add a great deal to budget revenue in 2012 though added that there are also some risks.
He said that the recent years’ developments as well as the experience accumulated in tax and customs administration for these years give grounds for optimism.
“Besides, the share of receipts from large taxpayers in tax revenue grew to 55-60% within two or three years,” he said.
Alaverdyan also pointed out that the expected growth in many segments of the economy, including the processing and mining industries, will fill the budget as well.
Speaking about risks, he said that agriculture, construction and services sectors are unlikely to make significant contribution to the 2012 budget revenue.
Alaverdyan also said that a clear idea about the degree of shady dealings is needed to understand how much these sectors can add to budget revenue.
“It should be estimated in which sectors room for shady dealing is especially large to direct administration mechanisms exactly to these segments,” he said.
Alaverdyan also pointed out companies’ overpayments as another trouble. “It means there is a separate segment of business to which we owe money.”
This debt, he said, amounts to AMD 150 billion.
Speaking about the factors which can bring additional tax receipts to the budget, he singled out administration.
However, this factor is limited, since according to international and expert estimates, it can bring only AMD 12 billion, which makes up 0.3% of GDP.
The third measure to be taken to enlarge tax inflow is amendment of laws. The amendments are now being discussed in the National Assembly.
These amendments can add only 13 or 14 billion to budget revenue.
On September 29, Armenian government approved the 2012 draft budget. The budget revenue is projected at AMD 910 billion, spending AMD 1042.5 billion and deficit 132.5 billion here.
Taxes are planned to have the biggest share in the 2012 revenue – they will total AMD 732 billion the next year.
Mandatory social payments will amount to AMD 142 billion.
In this draft budget, revenue is planned to be enlarged by 6.8% in 2012, compared with 2011 (AMD 852.4 billion) and spending is projected to grow by about AMD 41.5 billion. ($1 – AMD 380.47). -0-
