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The Speech of NKR President during the meeting at the State Tax Service

Date: 01-21-2009
Source: Azat Artsakh newspaper
Who: NKR President Bako Sahakyan
Where: Stepanakert

Dear attendees,

The State Tax Service plays an important role in the development of the economy of our republic. The reputation of our state from the perspective of launching economic activities and the confidence of investors in it depend to a large extent on your effective work.

I would like to mention that within the reporting period serious work has been done within the system of the state tax service, which overall I evaluate as positive. Appropriate figures reflect tangible quantitative and qualitative changes have taken place.

In the year of 2008 the total volume of state budget incomes, duties and obligatory social welfare payments has constituted 17 billion 271 million AMD, which enabled to ensure the over-implementation of the annual plan assignment. The volume of these inflows surpasses the same figures of 2007 by 3,5 billion drams or by 25,6 percent. And this is taking place against the background of the current international financial crisis due to which the biggest taxpayer of our republic the “Base Metals” closed joint stock company has reduced its industrial production volumes thus depriving state budget of 1,6 billion dram fund inflow. The targeted efforts to eliminate double standards and different game rules for the market participants resulted in substantial improvement of the tax discipline, as well as the level of tax service, particularly in the sphere of trade.

At the same time it should be always kept in mind that that tax collection process should not be an obstacle for entrepreneurial activities, especially for the development of small and medium size businesses. This can be achieved only by creating equal conditions for all business entities thus providing entrepreneurs an opportunity to develop and enlarge their business and direct resources to solve different social problems.

In this regard I consider necessary further improve tax legislation and carry out measures that will result in increasing the volume of foreign and domestic investments. Special attention should be paid to proper organization of supervision directed to reveal shadow economic entities and bring them to legal field.

It is gratifying that in the previous year the state budget received 1 billion 97 million drams as trade tax, which is the fulfillment of the set goals by 163,8 percent and is more than twice the corresponding figures of 2007. This fact depicts the efficiency of the measures taken against shadow phenomena. The introduction of cash registers has also contributed to this efficiency. This in its turn improved the standards of service. To improve the functioning of the system it is necessary simplify tax administration as much as possible, decrease unnecessary bureaucratic procrastination, make available the introduced changes to economic entities, establish normal partnership with them.

Within this context I consider important carry out proper cadre policy based on professionalism and moral qualities of employees. A persistent and continuous struggle should be waged against violations and other negative phenomena without which it will be impossible to fulfill tasks put in front of the system. These tasks of 2009 will be numerous and various too. I would like to be confident that you will do everything possible to organize the work of the system in an effective way. The authorities in their turn will assist you in every possible way and will keep in the spotlight this important sphere the problem it faces.

Thank you.

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* Disclaimer: NKR Office does not necessarily share views of these writers or news organizations.

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