USAID LAUNCHES TAX REFORM PROJECT IN ARMENIA

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Yerevan, Armenia – On February 20, 2013, USAID Armenia officially launched a new four-year Tax Reform Project, designed to foster an improved tax climate in Armenia. USAID Armenia Mission Director Karen Hilliard, World Bank Country Manager for Armenia Jean-Michel Happi, Armenian Deputy Minister of Finance Suren Karayan and the Chairman of the State Revenue Committee Gagik Khachatryan delivered opening remarks at the kick-off event, which was attended by representatives of the Armenian government, the international community, local NGOs and other stakeholders.

Welcoming the audience in Armenian, Dr. Hilliard noted at the event that "For over ten years, USAID has been supporting the Government of Armenia to improve the fiscal policy and tax administration. The new program continues the partnership between the United States and Armenia. The project will assist the Armenian government to develop a more effective tax system and facilitate tax payments by businesses. We know that tax and financial reforms are challenging, so if there is political will, USAID will support the Government of Armenia." 

The Chief of Party of the Tax Reform Project William Gardner presented the goals of the four-year program, which will enhance the capacity of the Ministry of Finance and State Revenue Committee to develop effective and efficient tax policies that promote economic growth, support the revenue needs of the state budget, and improve the fairness of the tax system. In addition, the project will work with the Ministry of Finance, the State Revenue Committee and taxpayer groups to improve public discourse on tax issues.

The Tax Reform Project will support the World Bank’s Tax Administration Modernization Project (TAMP) by assisting the State Revenue Committee to enhance the functionality of the current Taxpayer 3 system as well as design and implement additional taxpayer services.

Over the coming years, the USAID tax project will emphasize public outreach and citizen participation throughout its activities, conduct a major survey of taxpayer attitudes, promote gender equity in tax policy and tax administration, and enhance mechanisms for exchange of information among the Ministry of Finance, the State Revenue Committee and taxpayers.