Increase in share of taxes in GDP to cut shadow economy- MP says
The planned increase in the share of taxes in Armenia's GDP by 2.5 pp. is supposed to cut the shadow sector and improve business environment for investors, Gagik Minasyan, the head of a parliamentary committee on financial, credit and budgetary issues from the Republican Party of Armenia, told a news conference today.
On June 22, Armenia's parliament approved the government’s plan of actions for 2017-2022 that promises faster economic growth and poverty reduction. Under the plan, the government will ensure that the economy grows at an average annual rate of around 5 percent for the next five years. The growth is expected to cut Armenia's poverty rate, standing now 30 percent, by 12 percentage points.
According to Minasyan, the growth in the share of taxes in the GDP will be supported by effective tax and customs administration.
"We know that the shadow economy is one of the factors that repel investors,' Minasyan told journalists. According to him, the government is paying special attention to improving Armenia's position in the Doing Business index to offset the problems arising from Armenia’s complicated communication opportunities.
The government’s plan of actions calls also for increasing the share of exports in Armenia's GDP to 40% from current 16%, and for increasing the gross minimum wage by 25% in the next five years.-0-