WB expert finds ratio of taxes to GDP low in Armenia, deputy chairman of state revenue committee thinks otherwise
01.10.2011,
04:17
The current low ratio of taxes to GDP is among Armenia’s biggest problems, Munawer Sultan Khwaja, senior public sector specialist at the World Bank, said Friday answering the question of ARKA News Agency.
YEREVAN, September 30. /ARKA/. The current low ratio of taxes to GDP is among Armenia’s biggest problems, Munawer Sultan Khwaja, senior public sector specialist at the World Bank, said Friday answering the question of ARKA News Agency.
At the presentation of his“Risk-Based Tax Audits” book, he said referring to the International Monetary Fund’s study that Armenia can collect more taxes and that creation of systems spurring fulfillment of taxpayers’ commitments would intensify the tax flow to the government budget.
In his book, Khwaja explains key principles for selecting cases for audits using methods focused on high-risk taxpayers.
He said development of human resources and opportunities in IT area would strengthen and expand voluntary fulfilment of tax duty.
Armen Alaverdyan, deputy chairman of Armenian State Revenue Committee, on his side, said that the ratio of taxes to GDP depends on GDP, its structure, taxable segments of the economy and Armenia’s system of preferences rather than on timely payment of taxes.
“I don’t find this ratio low,” he said. “I think it is a medium ratio, compared with European countries. ” He explained that when calculating the ratio, mandatory social payments should also be taken into account and with that the figure raises to 20 percent.
According to ARKA News Agency’s data based on official statistical reports, GDP amounted to AMD 1.4 trillion in Jan-June 2011, while tax receipts totaled AMD 305 billion. Ratio of taxes to GDP was 21.1% in Jan-June 2011. ($1 = AMD 371.35). -0---
At the presentation of his“Risk-Based Tax Audits” book, he said referring to the International Monetary Fund’s study that Armenia can collect more taxes and that creation of systems spurring fulfillment of taxpayers’ commitments would intensify the tax flow to the government budget.
In his book, Khwaja explains key principles for selecting cases for audits using methods focused on high-risk taxpayers.
He said development of human resources and opportunities in IT area would strengthen and expand voluntary fulfilment of tax duty.
Armen Alaverdyan, deputy chairman of Armenian State Revenue Committee, on his side, said that the ratio of taxes to GDP depends on GDP, its structure, taxable segments of the economy and Armenia’s system of preferences rather than on timely payment of taxes.
“I don’t find this ratio low,” he said. “I think it is a medium ratio, compared with European countries. ” He explained that when calculating the ratio, mandatory social payments should also be taken into account and with that the figure raises to 20 percent.
According to ARKA News Agency’s data based on official statistical reports, GDP amounted to AMD 1.4 trillion in Jan-June 2011, while tax receipts totaled AMD 305 billion. Ratio of taxes to GDP was 21.1% in Jan-June 2011. ($1 = AMD 371.35). -0---
