Economic Growth In Armenia To Add AMD 63 Billion To Budget Tax Revenue In 2011
10.11.2011,
03:45
Economic growth in Armenia will send additional AMD 63 billion to budget tax revenue the next year, Gagik Minasyan, chairman of the National Assembly’s financial and budgetary committee, said Wednesday at a news conference.
YEREVAN, November 9. /ARKA/. Economic growth in Armenia will send additional AMD 63 billion to budget tax revenue the next year, Gagik Minasyan, chairman of the National Assembly’s financial and budgetary committee, said Wednesday at a news conference.
Armenian government has worked out some amendments to tax laws to enlarge tax collection in 2012 by AMD 101 billion.
“The remaining 30 billion will be ensured by administration and legislative changes,” Minasyan said.
Speaking about legislative changes, he said that they relate to social area. In particular, taxes on expensive cars, on higher than AMD 2 million income and excise taxes on heavy drinks will be increased.
The income tax scale will be based on a progressive principle. It means the upper benchmark, which stood at 20% before that, will be moved up. The government sets 25% upper benchmark for those individuals who have AMD 2-million and higher income. Besides, it is planned to increase cost rate for vodka by 50% leaving the lower benchmark unchanged, at AMD 500. Customs duty on cars which cost more than $90,000 will be raised by 20%.
Minasyan stressed the importance of a legislative package related to mining industry.
“International experience shows that the laws we used to apply in this area barred us from full-scale taxation - mining industry could send far greater sums to the government budget,” he said.
The new legislative package will bring additional AMD 2.7 billion to the budget.
Speaking about the tax burden that may be borne by small- and mid-scale businesses, Minasyan said that recent years’ statistical reports showed that the bulk of additional tax receipts came from large businesses.
“And that doesn’t happen by accident, since tax changes implemented in recent years show that preferential conditions are created for small and medium businesses and serious steps are being taken to lessen shady dealings in large businesses,” he said adding that legislative changes are aimed at combating shadow economy.
Earlier, Armenian Prime Minister Tigran Sargsyan said that the aim of the legislative package is to improve business environment for small and mid-scale businesses and shift tax burden to high-income areas.
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.
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 382.89). --0—
Armenian government has worked out some amendments to tax laws to enlarge tax collection in 2012 by AMD 101 billion.
“The remaining 30 billion will be ensured by administration and legislative changes,” Minasyan said.
Speaking about legislative changes, he said that they relate to social area. In particular, taxes on expensive cars, on higher than AMD 2 million income and excise taxes on heavy drinks will be increased.
The income tax scale will be based on a progressive principle. It means the upper benchmark, which stood at 20% before that, will be moved up. The government sets 25% upper benchmark for those individuals who have AMD 2-million and higher income. Besides, it is planned to increase cost rate for vodka by 50% leaving the lower benchmark unchanged, at AMD 500. Customs duty on cars which cost more than $90,000 will be raised by 20%.
Minasyan stressed the importance of a legislative package related to mining industry.
“International experience shows that the laws we used to apply in this area barred us from full-scale taxation - mining industry could send far greater sums to the government budget,” he said.
The new legislative package will bring additional AMD 2.7 billion to the budget.
Speaking about the tax burden that may be borne by small- and mid-scale businesses, Minasyan said that recent years’ statistical reports showed that the bulk of additional tax receipts came from large businesses.
“And that doesn’t happen by accident, since tax changes implemented in recent years show that preferential conditions are created for small and medium businesses and serious steps are being taken to lessen shady dealings in large businesses,” he said adding that legislative changes are aimed at combating shadow economy.
Earlier, Armenian Prime Minister Tigran Sargsyan said that the aim of the legislative package is to improve business environment for small and mid-scale businesses and shift tax burden to high-income areas.
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.
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 382.89). --0—
