YEREVAN, OCTOBER 4, NOYAN TAPAN. In January-August 2006, the tax revenues of the RA state budget made 220.3 bln drams (about 506.1 mln USD), or 87.7% of the programmed index for the first nine months of this year. According to a press release of the RA Ministry of Finance and Economy, the tax revenues increased by 19.5% or 36 bln drams on the same period of 2005. High growth rates were registerted with respect to collection of all tax types thanks to the economic growth and improved administration, as no essentail amendments regarding budget revenues have been made in the tax legislation this year. There was an increase in the collection of direct taxes (profit tax, income tax) during the first 8 months of 2006, which allowed to improve the structure of tax revenues compared with the same period of last year. The share of direct taxes in the state budget tax revenues increased in the period under review - from 24.8% in January-August 2005 to 28.6% in the same months of 2006. At the same time, the share of indirect tazes (VAT and excise tax) declined from 59.9% to 56.3%. VAT accounted for 45.1% of tax revenues and made 99.3 bln drams. Out of the indicated amount, 66.9 drams was collected from taxation on the Armenian border and 32.4 bln drams - from the domestic circulation of goods and services. VAT revenues of the state budget grew by 14.7% or 12.7 bln drams compared with the same months of 2005. Excise tax accounted for 11.3% of the state budget tax revenues and made 24.8 bln drams. Excise tax revenues from goods imported into Armenia made 16.5 bln drams, including 7.5 bln drams from taxation of imported gasoline and diesel fuel and 7.3 bln drams - from imported cigarettes. Budget revenues from collection of excise tax on goods produced in Armenia made 8.3 bln drams, 3.9 bln drams of which was collected from sales of locally produced cigarettes. Excise tax revenues grew by 2.3% or 557.7 mln drams on the same period of last year. Profit tax accounted for 18.9% of tax revenues of the state budget and made over 41.6 bln drams. The high growth rates of this tax continued in the first 8 months of 2006: it grew by 41% or more than 12.1 bln drams on the same period of 2005. Income tax revenues of the RA state budge amounted to 21.4 bln drams in January-August 2006, which exceeds the respective index of last year by 35.1% or about 5.6 bln drams. This growth was mainly achieved thanks to revenues from the execution of the labor and civil agreements totalling 20.1 bln drams. During the period under review, customs duty revenues also increased due to a growth in imports. Customs duty revenues made over 11.4 bln drams, exceeding by 15.1% or over 1.5 bln drams the index of the same period of last year. Fixed payments amounted to 9.6 bln drams in January-August 2006, exceeding by 16.4% or 1.4 bln drams the respective index of 2005. This growth is mainly conditioned by increased payments from operation of gas filling stations, means of transport, public catering facilities. The simplified tax revenues made 4.8 bln drams in the period under review, growing by 10.6% or 459.4 mln drams on the same period of last year, mainly due to increased revenues from trade. The RA state budget revenues from other taxes amounted to 7.4 bln drams in the indicated period. Particularly, environmental payments made 4.1 bln drams, road payments - 1.6 bln drams. Other taxes grew by 31.7% or 1.8 bln drams on the same period of last year, mainly as a result of an increase in nature use payments and fines imposed for violations of the tax legislation.

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