How to Waste State Means

Armenia’s authorities declared a relentless struggle against corruption and waste of state means. Productivity of the struggle by facts will be possible to judge after a certain period only. Prior to that productivity of expenses of the Government may be calculated. As formerly nobody authorized the Government to waste the money of taxpayers uselessly and senselessly either.

RA Government obliged householders to apply new-generation cash registers from 2013. Selling of cash registers was entitled to “Cash Register Introduction Office” SNCO. And, as far as deadlines were short as usual, tender hasn’t been declared. Annual expenditures of SNCO maintenance comprise AMD 203 thousand per year.

At the initial stage they were to invest AMD 500 million as per results of 2012 and taxpayers exceeding that amount—from 1 July, 2013. Statistical data of tax authority’s official website for 2013 (“Information on use of new-generation cash register and labels”) show that, “From the mentioned period cash register fiscal allowances will continue to grow.  Thus, for July 2013 as compared to the same month of 2012 growth comprised AMD 3.5 billion or 4.7%, for August 2013 as compared to the same period in 2012—AMD 7 million or 9.6%, for September 2013 as compared to the same period of 2012—AMD 10.4 billion or 15.4%, and already for October 2013 as compared to the same period of 2012—AMD 14.1 billion or 19.8%.”

According to the data of National Statistical Service Armenia’s retail trade turnover in the period of 2007-2011 recorded about 10 pp growth as compared to the previous year (except 2009 crisis period). If retail trade turnover before the year of new-generation cash register (2013) grew by 10% and the same temp has been maintained throughout the following years, then it turns out that result of use of new-generation cash register can’t be assessed at least by one tax authority by the abovementioned percentage growth.

On the other hand, on account of information provided by tax authority by installation of labeling order, volume of products during the same period have grown by 50%, which the taxpayers should have to declare by retail trade turnover as well, and it turns out, that volumes of declared retail trade turnover basically didn’t record growth.

Accordingly, it turns out that by installation of new-generation cash registers volume of declaration volumes is not proper, or their installation has nothing to do with volumes of trade turnover.

Meanwhile to support some group of taxpayers, mainly taxpayers with average and small turnover, some part of the price of purchasing cash registers, which was a considerable amount, has been compensated by the Government. That is, the Government spent billions to install cash registers, however, in practice their productivity equals to zero.

The benefitting party, however, is the company providing cash registers.

By Gayane Khachatryan