Rustam Badasyan: Revenue Growth Recorded for All Types of Taxes in 2021

Despite the consequences of the global economic crisis due to the coronavirus pandemic and military actions, it was possible to ensure state budget revenues in 2021. The Chairman of the State Revenue Committee said about this during the preliminary discussions of the annual report on State Budget Execution of the Republic of Armenia for 2021 at the joint sitting of the NA Standing Committees on Economic Affairs and on Financial-Credit and Budgetary Affairs held on June 1.

According to the rapporteur, the taxes-GDP ratio was 22.7% in the reporting year, which was 0.2% higher than expected for 2021. The Chairman of the structure informed that revenue growth was recorded for all types of taxes, except for excise tax, due to the reduction of production among some tobacco companies. It was noted that the growth of the refunds in terms of VAT, income tax and excise tax had a negative impact on the revenue indicators. It was 180.2 billion drams.

According to Rustam Badasyan, 146.7 billion drams in terms of VAT was returned in 2021, in terms of income tax - 32.6 billion drams.

"Borrowers and co-borrowers were refunded 22.7 billion drams of income tax in terms of interests paid for mortgage service. It has been increased compared to the previous year by 70.4%," the SRC Chairman underlined.

The rapporteur referred to the administration carried out by the committee to reform the sector. In particular, measures have been taken to modernize electronic systems and infrastructure, improve the quality of taxpayer service and expand the services provided.

A new system for issuing low-abiding taxpayer certificates was introduced in 2021. In order to characterize the role of taxpayers in ensuring the state budget revenues, the taxpayer's day was established, an electronic platform for the refund of interests paid for mortgage service was introduced, as well as an electronic payment system for customs payments and other payment collected by the customs bodies.

A strategy has been adopted to reduce the number of audits in terms of complex tax audits as much as possible and direct them to more risky areas. "As a result of 1156, complex tax audits. 28.3 billion drams of additional tax liability was recorded in 2021," Rustam Badasyan said.