In the first half of 2010, Armenia’s state budget revenues exceeded 366.3bn AMD (about $950m) and on-budget expenditures totaled 383.2bn AMD (about U.S. $1bn) – 110.3% and 92.3% performance of the Government-approved plan respectively.

The RA Ministry of Finance reports the tax revenues and state duties collected in the first half of 2010 totaled 286.2bn AMD (about U.S. $745m AMD) – in excess of 11.7% of the plan. The aforementioned revenues increased by 22.8% or 53bn AMD (about U.S. $138m), the main reason being higher value-added and income taxes.

The VAT ensured 50% of taxes and state duties. Specifically, VAT revenues totaled 152.6bn AMD (about U.S. $370m) – an annual increase of 37.8b or 36.1%. Customs duties constituted about 65% of VAT revenues. On the other hand, profit tax revenues totaled 43.5bn AMD (about U.S. $110m) – an annual decrease of 3.2%.

The decrease was expected. Companies calculate their profit taxes before April 25 of the following year. Since most Armenian companies faced problems as a result of last year’s crisis, sustaining losses or earning low profits, they did not pay profit taxes early in 2010.