Package of tax changes contains risks but is not a risky document – finance minister of Armenia
15.11.2011,
00:23
Package of tax changes submitted by the Government of Armenia contains risks but it is not a risky document, said Armenian Finance Minister Vache Gabrielyan on Monday to the journalists.
YEREVAN, November 14. /ARKA/. Package of tax changes submitted by the Government of Armenia contains risks but it is not a risky document, said Armenian Finance Minister Vache Gabrielyan on Monday to the journalists.
According to him, anxiety expressed by the head of State Revenue Committee Gagik Khachatryan is natural which the budget has also fixed. “Speaking about the risks of the financial document is normal”, said Gabrielyan.
The head of State Revenue Committee Gagik Khachatryan during the discussion of the state budget for 2012 in the parliament said that increase of tax collection in Armenia by 101 billion drams still remains a problem from the point of view of the collection process of taxes. He said that currently this package can not provide 30% increase of volume of taxes, and new resources and reduction of “shadow economy” is needed.
Gabrielyan said that there are external risks such as macroeconomic risks and risks in agriculture of Armenia which give cause for concern. “If in Europe serious processes take place, it will impact global economy, as well as Armenia. The state budget outlines concerns related to it, but it does not mean that it is not necessary to implement the tax portfolio... Of course, there can be problems but in normal conditions the budget is realistic and the income will be collected as envisaged”, said Gabrielyan.
The tax portfolio got positive conclusion of parliament committee on economic issues and is included in the agenda of four-day meeting of the parliament.
Government of Armenia prepared a legislative package, according to which it is planned to make significant changes in tax legislation for increasing tax collection volumes in the state budget of 2012 by 100 billion drams compared to 2011. In particular, it is proposed to introduce “luxury tax” for expensive cars with market price of over $90 thousand, increase by 50% deductible of expensive alcohol beverages and the income tax to 25% for individuals with an income of 2 billion drams and more. Issue of increasing fixed payments for casinos is envisaged to increase by 50%. -0-
According to him, anxiety expressed by the head of State Revenue Committee Gagik Khachatryan is natural which the budget has also fixed. “Speaking about the risks of the financial document is normal”, said Gabrielyan.
The head of State Revenue Committee Gagik Khachatryan during the discussion of the state budget for 2012 in the parliament said that increase of tax collection in Armenia by 101 billion drams still remains a problem from the point of view of the collection process of taxes. He said that currently this package can not provide 30% increase of volume of taxes, and new resources and reduction of “shadow economy” is needed.
Gabrielyan said that there are external risks such as macroeconomic risks and risks in agriculture of Armenia which give cause for concern. “If in Europe serious processes take place, it will impact global economy, as well as Armenia. The state budget outlines concerns related to it, but it does not mean that it is not necessary to implement the tax portfolio... Of course, there can be problems but in normal conditions the budget is realistic and the income will be collected as envisaged”, said Gabrielyan.
The tax portfolio got positive conclusion of parliament committee on economic issues and is included in the agenda of four-day meeting of the parliament.
Government of Armenia prepared a legislative package, according to which it is planned to make significant changes in tax legislation for increasing tax collection volumes in the state budget of 2012 by 100 billion drams compared to 2011. In particular, it is proposed to introduce “luxury tax” for expensive cars with market price of over $90 thousand, increase by 50% deductible of expensive alcohol beverages and the income tax to 25% for individuals with an income of 2 billion drams and more. Issue of increasing fixed payments for casinos is envisaged to increase by 50%. -0-
