July 4, 2012 - 18:36 AMT
PanARMENIAN.Net - The World Bank’s Board of Executive Directors approved a US$12 million credit for the Tax Administration Modernization Project (TAMP) for Armenia. The Project will support the State Revenue Committee (SRC) to modernize its business processes, expand the use of e-governance including electronic filing of tax returns, and introduce a more targeted, risk-based compliance strategy, based on voluntary compliance.
“The government - with the support of development partners, notably the IMF, IFC, USAID and the World Bank - has already taken steps to improve its revenue administration,” said Jean-Michel Happi, World Bank Country Manager for Armenia. “Building on these efforts, this Project provides the framework and financing to support a comprehensive modernization of Armenia’s revenue administration. This operation is central to the Bank’s on-going Country Partnership Strategy for Armenia as it’s focused on enhancing the competiveness of domestic economy.”
The proposed project will increase voluntary tax compliance of tax payers, reduce tax evasion and compliance costs, as well as increase SRC’s administrative efficiency. These objectives will be achieved by i) introducing modern, integrated information technology to support SRC operations; ii) improving data exchange between the SRC and other agencies to enhance risk management and targeting of compliance activities; iii) reengineering and automation of business processes to improve efficiency and effectiveness; and iv) expanding e-Government, including e-filing and e-payments to lower the compliance burden for the private sector.
The total amount of the project is US$15.1 million, of which the Government of Armenia will finance US$3.1 million. The IDA credit in the amount of US$12 million carries a maturity of 25 years including a grace period of 5 years.
Since joining the World Bank in 1992 and IDA in 1993, the total IDA and IBRD commitments to Armenia amount to US$1, 624 million.