TAX SERVICES SAY HIGHER BUDGET REVENUES AT THE EXPENSE OF ECONOMIC GROWTH AND LOWER SHADOW ECONOMY
Armen Alaverdyan, deputy head of state tax service, told reporters at the National Press Club higher incomes to the state budget are at the expense of smaller shadow economy and economic growth. In his words, tax services generated 221 bln Armenian drams to the state budget in 2006 whereas in 2002 this figure was only 104 bln. He also said in the first five months of 2007 budget revenues from taxes made up 103 bln Armenian drams, almost equal to total revenue of 2002. However, Alaverdyan failed to state the rate of economic growth in tax revenues. Nor could he tell how much shadow economy went down.