ArmInfo. Analyzing data on Armenian state budget revenues for the first quarter of 2024, head of the ACSES Analytical Center Haykaz Fanyan suggests thinking about increasing the tax burden on jewelry market participants.
As Fanyan notes, in the 1st quarter of 2024, despite the fact that state budget revenues increased by 38.1 billion drams, the state revenue plan was only fulfilled by 93.2%. Moreover, the execution of tax revenues and state duties was even lower - 92.0%.
"This is a "yellow card" that requires identifying new sources of growth in tax revenues, introducing more optimal approaches to taxation, and in this regard, the most realistic option is to increase the tax burden on the jewelry sector. To be fair, it should be noted that steps in this direction are already being taken," the expert wrote on his page on the social network.
Haykaz Fanyan also provides comparative data on value added tax (VAT) revenues for the 1st quarter of 2023 and 2024. In particular, in the first three months of 2023, the VAT collection amounted to 165.6 billion drams, and for the same period of the current year - 164.3 billion.
At the same time, VAT on imports for the reporting period in this year. decreased by 26.6 billion drams - from 115.5 billion in 2023 to 88.9 billion in 2024, which, according to the economist, is most likely due to the decline in the re-export of cars. "It should also be noted that during the period under review the dram depreciated by 2.3%, which, other things being equal, should have contributed to the growth of the tax base," he summarizes.
As ArmInfo previously reported with reference to the information bulletin of the country's Ministry of Finance, in January-March 2024, state budget revenues amounted to 525 billion drams, against the adjusted 563.1 billion drams and the actual 483.6 billion drams for the same period in 2023. The level of execution in relation to the adjusted plan was 93.2%.
Compared to the same period last year, state budget revenues increased by 8.6% or about 41.4 billion drams. According to the Ministry of Finance, the growth in state treasury revenues is largely due to an increase in tax revenues. In particular, in the first quarter of 2024, the state budget of the Republic of Armenia received 500.6 billion drams in tax revenues and state duties, which amounted to 92% of the program indicator for the first quarter. Compared to the same period in 2023, the figure increased by 8.5% or about 39.3 billion drams, which is mainly due to an increase in revenues from income tax, profit tax and social contributions.
But a decline was recorded in the VAT line - 164.3 billion drams, against 165.6 billion drams in 2023 (32.8% of tax revenues and state duties of the reporting period). Compared to the same period of the previous year, the decrease in VAT revenues resulted from a decrease in income from goods imported into the Republic of Armenia and an increase in income from the turnover of goods and services produced in the Republic of Armenia, the Ministry of Finance noted.
