World Bank’s program to allow enlargement of tax revenue share in GDP by 2.3-5.8%

YEREVAN, January 20. /ARKA/. The World Bank’s program of tax administration improvement in Armenia will make it possible to enlarge the tax revenue’s share in GDP by 2.3-5.8%.

In the 2013 government budget the share of taxes in GDP is projected at 21.88% against 17.36% in 2012.  

Jean-Michel Happi, the World Bank’s Country Manager for Armenia, speaking Wednesday at the presentation of a four-year USAID project aimed at supporting the WB’s program, said the World Bank is ready to assist the government in its efforts to improve dramatically tax administration. 

Gagik Khachatryan, head of Armenia’s State Revenue Committee, on his side, said that the government has already embarked on sweeping tax reforms, which are being implemented in cooperation with international donors. 

He said the USAID project is aimed at ensuring technical support to the WB program, which implies certain measures for building up the finance ministry’s ability to shape an effective tax policy, for providing the State Revenue Committee with a larger room for tax administration and for improving a dialogue between public and private sectors.   

“International experts will help the finance ministry use international experience for shaping a new tax policy and tax administration and apply information technology in tax agencies’ work,” he added. 

On December 4, 2012, Armenian National Assembly ratified an agreement to implement the tax administration modernization program. Under this agreement, the WB’s International Development Association lent $12 million to Armenia for introduction of information technology in tax area. In particular, this money was intended for purchasing new equipment and servers as well as for improving Taxpayer – 3 information module. -0-