Monday, November 19 2018 16:57

ArmInfo.The idea of taxing incoming transfers to Armenia will not be implemented without extensive public debate. Acting First Deputy Prime Minister of  Armenia Ararat Mirzoyan announced this on November 19 at an  extraordinary meeting of the Cabinet of Ministers.

According to him, the initiative is presented in social networks in a  somewhat distorted form. It is possible that some people even wish to  manipulate information about the initiative of the financial  authorities of the Republic of Armenia to tax the money transfers of  individuals to the republic. Nevertheless, as Mirzoyan assured, the  public will implement the idea after its approval.

To note, according to the aforementioned draft law, all citizens of  Armenia from 18 to 65 years old will become potential payers of  income tax (23%) from 2020. In other words, the recipients of cash  transfers from abroad, the villagers, and all self-employed people  will be taxed. Traditionally, the volume of annual transfers to  Armenia is estimated at $ 800 million - $ 1 billion. The SRC of  Armenia confirmed the desire of the authorities to impose this kind  of income on the citizens of the republic.

Meanwhile, for many citizens of the country, especially, for  pensioners, transfers are the only source of income. In addition,  they provide a significant portion of domestic demand.

The Central Bank of Armenia revised the forecast for the growth of  remittances of individuals by 2018 to the side of the slowdown - from  the previous  7-9% to the current 5-7%, causing it to collapse of the  ruble against  the backdrop of new US sanctions against Russia. About  this it is  noted in the program of monetary policy (DCC) of the  Central Bank for  the III quarter of 2018, published in late August

In the renewed range of the forecast for the growth of private  transfers, the Central Bank included the results of the first and  second quarters of 2018, in particular, exceeding the actual growth  over the expected rates in the first quarter and corresponding to  expectations recorded in the second quarter of growth. Thus,  according to the Central Bank, in the first quarter of 2018 compared  to the same period last year, the inflow of transfers of individuals  increased by 14.5%, while the volume of remittances received from  Russia increased by 22.1%, against an annual growth of 14.5% and  20.7% respectively in the first quarter of 2017.  In the structure of  the inflow, Russia's share in the I quarter of 2018 rose to 56% from  53% in the first quarter of 2017. In the second quarter of 2018, the  inflow of private transfers grew by only 4.2% per annum, while the  volume of remittances received from Russia increased by 6.6%, against  an annual growth of 17.9% and 12.2%, respectively, in the second  quarter of 2017. In the structure of the inflow, Russia's share in  the II quarter of 2018 increased from 56% to 60.4%, against growth in  the second quarter of 2017 from 53% to 59.1%.

According to the latest data of the Central Bank for January-July  2018, the inflow of remittances of individuals amounted to $ 967  million, and the outflow exceeded $ 634 million. The annual growth  (January-July 2018 to January-July 2017) of the total inflow of  remittances of individuals amounted to 7.5% with growth of outflow by  25,1%. As a result, the net inflow of private transfers declined by  15.3% year-on-year. The share of Russia in the inflow amounted to  59.3% or $ 573 million, while in the outflow it was 37.3% or $ 236.6  million. Moreover, the inflow of private transfers from Russia grew  by 9.5% annually, with the growth of the outflow of remittances to  Russia 14%, resulting in a net inflow from Russia increased by 6.6%.

According to Central Bank statistics, in 2017, the inflow of natural  persons' transfers to Armenia increased by 14.6% (against the  projected 14-16%) to $ 1.757 billion. In this case, the outflow of  transfers grew by 25.6% to $ 1.026 billion in 2017. As a result, net  the inflow of transfers in 2017 increased by 2.1%, to $ 731 million.   In the tributary, Russia's share is 60.6% or $ 1.065 billion, while  in the outflow - 34.5% or $ 354 million.  The inflow of transfers  from  Russia grew in 2017 at 18, 7% with an outflow growth of 6.1%,  which  increased net inflow from Russia by 26.2%.