IMF says Taxation Code of Armenia needs improvement

ArmInfo. IMF sees the need to improve Taxation Code of Armenia in view of possible shocks and challenges to the fiscal system of the country, Hossein Samiei, the IMF Mission Chief to Armenia, told a news conference on April 6.

The new Code will upgrade the efficiency of tax collection and improve the business sector in the country.  As for the fiscal policy, Hossein Samiei said that jointly with the Central Bank of Armenia they have agreed to start softening the monetary conditions gradually through reduction of the interest rates.  It is noteworthy that the IMF Mission chief made such statement at a news conference during which an improved forecast of economic growth for Armenia - from 2.2% to 2.25%-2.5% - was announced,

To recall, World Bank forecasts a 2.5% GDP growth for Armenia in 2016.  EBRD forecasts economic growth to 2% in 2016. The Central Bank of Armenia has revised its economic growth forecast for Armenia in 2016 from the previous 3.2- 3.9% to 1.6-2.7%, according to the CBA's monetary policy program for Q4 2015. The state budget of Armenia fixed 2.2% GDP growth in 2016. According to the National Statistical Service of Armenia GDP growth in Armenia in 2015 totaled 3% versus 3.5% in 2014.

According to the National Statistical Service of Armenia, Armenian budget revenues in 2015 grew only by 0.9% to 1.147 trillion AMD while expenditures grew by 12.2% to 1.378 trillion AMD, due to which deficit grew by 2.5-fold.