Armenian premier: tax collection increase not to strike at businesses
13.10.2011,
01:14
The tax collection increase planned by the government will not strike at businesses, Prime Minister Tigran Sargsyan said Wednesday as met with members of the Union of Manufacturers and Businessmen (Employers) of Armenia.
YEREVAN, October 12. /ARKA/. The tax collection increase planned by the government will not strike at businesses, Prime Minister Tigran Sargsyan said Wednesday as met with members of the Union of Manufacturers and Businessmen (Employers) of Armenia.
The government decided to increase tax collection by about AMD 100 billion in 2012.
“We must narrow the budget deficit without cutting spending,” the government’s press office quoted the premier as saying. “The only way to do it is to collect more taxes, and we will find additional resources for that. This will not strike at businesses, but will help us to fulfill an important economic objective.”
He said that some financial resources from the 2012 government budget would be targeted for spurring development of businesses.
The economy ministry has worked out industrial policy strategy, under which AMD 1.5 billion will be earmarked every year for supporting local export-oriented enterprises.
Pointing out poverty as one of Armenia’s biggest troubles, Sargsyan said that the global economic and financial crisis worsened things. He views increase of social benefits and pensions as one of poverty-combating instruments.
“It means we are trying to get additional resources on one hand and to spend them effectively for solving social problems and developing business environment on the other hand,” he said.
The changes planned to be made in tax-related laws imply enlargement of tax base and improvement of tax administration.
The government has estimated effect from tax administration improvement at 10 to 15 billion drams, and tax inflow is estimated to grow by 100 billion drams.
On September 29, the government approved the 2012 draft budget, in which revenue is projected at AMD 910 billion, spending at AMD 1042.5 billion and deficit at 132.5 billion.
In the 2012 draft budget, revenue is planned to be enlarged by 6.8% from the AMD 852.4 billion projected for 2011. Budget spending was enlarged by AMD 41.5 billion, compared with the 2011 government budget. ($1 = AMD 376.09). -0-
The government decided to increase tax collection by about AMD 100 billion in 2012.
“We must narrow the budget deficit without cutting spending,” the government’s press office quoted the premier as saying. “The only way to do it is to collect more taxes, and we will find additional resources for that. This will not strike at businesses, but will help us to fulfill an important economic objective.”
He said that some financial resources from the 2012 government budget would be targeted for spurring development of businesses.
The economy ministry has worked out industrial policy strategy, under which AMD 1.5 billion will be earmarked every year for supporting local export-oriented enterprises.
Pointing out poverty as one of Armenia’s biggest troubles, Sargsyan said that the global economic and financial crisis worsened things. He views increase of social benefits and pensions as one of poverty-combating instruments.
“It means we are trying to get additional resources on one hand and to spend them effectively for solving social problems and developing business environment on the other hand,” he said.
The changes planned to be made in tax-related laws imply enlargement of tax base and improvement of tax administration.
The government has estimated effect from tax administration improvement at 10 to 15 billion drams, and tax inflow is estimated to grow by 100 billion drams.
On September 29, the government approved the 2012 draft budget, in which revenue is projected at AMD 910 billion, spending at AMD 1042.5 billion and deficit at 132.5 billion.
In the 2012 draft budget, revenue is planned to be enlarged by 6.8% from the AMD 852.4 billion projected for 2011. Budget spending was enlarged by AMD 41.5 billion, compared with the 2011 government budget. ($1 = AMD 376.09). -0-
