Income taxation through overpayments is explosive for Armenia: Finance Minister

Out of objective reasons we’ll record underfulfillment regarding tax collections. RA Finance Minister Vardan Aramyan told reporters today, stating that this year GDP will be less by AMD 300 billion, i.e. about 60 billion underfulfillment will be recorded.

“Naturally, we can’t collect taxes at any price, as it complicates lives of householders, it means businesses didn’t earn such an income, and an attempt is made to tax incomes through overpayments. It’s highly explosive for the Republic of Armenia,” the Minister said.

In his words, fiscal policy should be anti-cyclic. V.Aramyan stated that throughout recent years we suffered shocks from the external world, less dollar flow, and this year reduction of transfers by 140 million is anticipated.

According to him, the influence of capital flow is neutralized through the debt, and it’s anticipated that budget deficit will be higher than 5%. The Minister stated that a conservative budget has been submitted to the NA with 2.8% deficit. In his words external debt is more than 50% GDP, it’s not dangerous, however, it’s alarming for the future to be more cautious.

By Gayane Khachatryan