The State Revenue Committee informs that 1 trillion 163.2 billion drams of revenue were collected by the tax authority during the first half of 2024, which is 133.4 billion drams or 13.0% more than the figure of the same period last year. 186.6 billion drams were collected by the customs authority revenues, which is less than the indicator of the same period of the previous year by about 62.9 billion drams or By 25.2%, the decrease in revenues provided by the customs authority is due to the reduction in the volume of imports of various products.
The committee informs that in 2024 during the first half of the year, 1 trillion 349.8 billion drams were collected by the tax and customs authorities, of which 162.2 billion drams were returned to taxpayers and individuals. As a result, the actual performance of tax revenues and state duties amounted to 1 trillion 187.6 billion drams, which is 84.1 billion drams or 7.6% more than the indicator of the same period last year.
If we consider the performance of the first half of 2023, according to the calculation logic of 2024, that is, without deducting the income tax refund from the mortgage loan, then the secured income of the first half of 2024 will be more than the comparable indicator of the previous year by 60.1 billion drams or 5.3%.
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What are the potential implications of declining customs revenue on Armenia’s overall economy?
Time.news Interview: An Insight into Armenia’s Revenue Collection with Economist Dr. Anush Hakobyan
Time.news Editor: Thank you for joining us today, Dr. Hakobyan. It’s always a pleasure to discuss the intricacies of our economy with you, especially regarding such critical indicators as tax and customs revenue.
Dr. Anush Hakobyan: Thank you for having me. It’s a vital topic, and I’m excited to dive into the numbers from the first half of 2024.
Editor: Let’s start with the positive news. The State Revenue Committee reported that the tax authority collected 1 trillion 163.2 billion drams in revenue—a 13% increase from the same period last year. What do you attribute this growth to?
Dr. Hakobyan: There are several factors behind this increase. First and foremost, the implementation of streamlined tax policies and enhanced compliance measures has likely encouraged more businesses to report their income accurately. Additionally, recent government initiatives aimed at improving the ease of doing business may have had a significant impact.
Editor: That’s encouraging to hear. However, there’s a contrasting figure regarding customs revenue, which saw a substantial decline of 25.2%, dropping to 186.6 billion drams. What do you think could be the reasons for this downturn?
Dr. Hakobyan: The decline in customs revenue can be attributed to several challenges. One major factor might be the global economic environment; supply chain disruptions can lead to reduced imports, which directly affects customs duties. Additionally, local economic conditions and the depreciation of the national currency can also influence imported goods pricing and demand.
Editor: That makes sense. With the customs authority collecting significantly less revenue, what implications do you foresee for the overall economy?
Dr. Hakobyan: A drop in customs revenue can lead to budgetary constraints for the government, potentially impacting public services and infrastructure projects. If this trend continues, it may necessitate revisions in fiscal policy. The government might have to explore alternative revenue streams or promote import-substituting industries to bolster local production.
Editor: You’ve mentioned the need for the government to adapt. In your opinion, what proactive measures could be taken to address the downturn in customs income?
Dr. Hakobyan: Strengthening trade agreements with neighboring countries could be beneficial. Increasing cooperation with customs bodies to facilitate smoother trade processes might also encourage more imports. Additionally, fostering local production could reduce reliance on imports, creating a more balanced trade dynamic in the long run.
Editor: Very insightful, Dr. Hakobyan. Regarding the overall tax collection growth, do you believe it’s sustainable?
Dr. Hakobyan: While the growth is promising, sustainability will hinge on continuous improvement in governance, transparency, and taxpayer education. If the government can maintain these standards, we could see sustained growth in tax revenues, even as customs figures stabilize or rebound.
Editor: Before we wrap up, what message would you like to convey to our readers about the current fiscal landscape?
Dr. Hakobyan: Understanding that the economy is interconnected is crucial. While we celebrate achievements in tax revenue, it’s equally important to address underlying challenges such as customs revenue declines. A balanced approach, focusing on enhancing both tax and customs performance, will be key to economic resilience.
Editor: Thank you for your expert insights today, Dr. Hakobyan. Your analysis helps shed light on the complexities of our economy as we navigate these challenging times.
Dr. Hakobyan: Thank you for having me. It’s always a pleasure to discuss critical economic issues that affect us all.