Armenian government to abolish untargeted tax exemptions

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YEREVAN, 13 June. /ARKA/. The Armenian government spends about AMD 680 billion a year on tax exemptions, Finance Minister Vahe Hovhannisyan said on Wednesday./pp 'We consider this amount as state expenditures. After all, this is how much the state budget is under-receiving because of these benefits, Hovhannisyan said in parliament while presenting a report on the 2023 budget execution./pp

According to him, these expenditures would be justified if all these privileges really favoured business development, but the answer is very ambiguous./pp

According to him, the ratio of taxes paid to GDP is much higher in developed countries./pp

For comparison, in Armenia it was23.9 per cent in 2023, up 0.7 per cent from 2022. But, for example, in Slovenia the ratio is 34 per cent, and in France it is all of 46 per cent. Accordingly, the tax benefits there are much less, but it does not prevent, for example, the French business to be much more competitive than the Armenian one, the Minister noted./pp

The Minister noted that the task of the state will be the cancellation of untargeted tax benefits. At the same time, the government intends to promote the increase of efficiency of enterprises. ($1 - 387.61 drams). --0--/p