Cutting income tax rate by 1 %affected budget revenues in 2021 – Ministry of Finance

YEREVAN, June 15. /ARKA/. In 2021 Armenian tax authorities collected more taxes and duties than in 2020, however, the decision of the government to cut the personal income tax rate by 1% led to a drop in revenues by about 19 billion drams, Armenian Finance Minister Tigran Khachatryan said at Wednesday’s parliamentary session.

According to him, the value-added taxes, which continue to account for the bulk of all collected taxes, contributed 35% of the budget revenue, followed by persoanl income taxes, which accounted for 27%, while the share of profit taxes amounted to 10%.

Khachatryan specified that 556 billion drams were collected in 2021 as value-added taxes, up 18% from 2020 or an increase of 84.4 billion drams, of which 53 billion drams were value-added taxes paid for imported goods and 31.4 billion drams were value-added tax colected from domestic turnover.

The minister noted personal income taxes totaled 426 billion drams, an increase of 15 billion drams or 3.6 percent over 2020.

Setting export duties on metal concentrates had a positive impact on tax revenues in 2021 as 24.6 billion drams additionally were collected, the minister said. Another positive factor, he said, was increasing by 1% payments by working citizens to the funded pension accounts, which grew by 18bln drams. ($1 – 419.63 drams) -0-

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