YEREVAN. – Relevant studies have been conducted before submitting the package of addenda to the Tax Code, to diagnose the current economic realities. Deputy Finance Minister Arman Poghosyan said this Tuesday during the parliamentary hearings’ debates on making reforms in the Tax Code of Armenia.

In his words, the first trend they have observed in these studies is that export-oriented branches in the country lag behind—in terms of profitability—the sectors, or branches, that are aimed at domestic consumption.

“That is, domestic consumption is more profitable [in Armenia] than exports,” Poghosyan explained. “And the main investments are made in the domestic domains of providing services.”

But the deputy minister noted that Armenia, as an open economy country, cannot link its economic development to the development of domestic consumption only.

In his view, exports from Armenia need to be stimulated by way of creating stable prerequisites for long-term economic growth. The official noted that these changes will result in a drop in state budget revenues. But Arman Poghosyan added that, to compensate for this drop, the tax burden shall be increased—even indirectly.