This year has been a difficult one, Head of the RA State Revenues Committee Gagik Khachatryan told reporters. He pointed out that the crisis overlapped the tax and customs reforms.

In this context Khachatryan pointed out numerous unresolved problems. He said that fiscal administration needs radical reforms. This year’s customs revenues totaled 230bn AMD and tax revenues 290bn AMD. The Committee returned a total of 20bn AMD of the overpaid 54bn AMD to taxpayers. “The tax revenues from energy generating enterprises have decreased by 1%, from transport and communication enterprises by 10%, from the mining industry by 29% and from the construction sector by 24%,” Khachatryan said. Interestingly, the capital construction sector has registered a 40% decline. The Committee must have cracked down on developers.

The decrease in car imports seriously affected tax revenues (a 25bn AMD decrease). Customs revenues from fuel imports showed a decrease of 2.8bn AMD. Total customs revenues from imports showed a decrease of 32% and from exports, 29%.

Large taxpayers had to lay off 12,000 employees, with only 1,500 jobs opened. It is not quite clear whether the 1,500 are the former shadow or “brand new” jobs. A 20% rise in ages has been registered. It may be the former “shadow wages” as well. Qt his recent press conference the Head of the Control Service of the RA President reported 29% shadow employment.

Khchatryan said that the Committee is pursuing an “inspection to control” policy. “If economic entities provide all the information, we do not have to conduct inspections – we are able to control taxpayers,” Khachatryan said. He complained about businesses, which “circulate very few papers, but much money.” This prevents the Committee from revealing shadow turnover. The Committee is elaborating mechanisms for increasing the official asset turnover.

T.P.