How to save billions with tax service optimizationArmenian tax inspectors 4 times ‘lazier’ than Georgian counterparts There has been a lot of talk recently about unnecessary staff members in some state institutions. To make things clear, PAN decided to compare the number of tax inspectors operating in Armenia and Georgia and their responsibilities. November 15, 2016 PanARMENIAN.Net - In a conversation with PanARMENIAN.Net a public relations officer of the Armenian State Revenue Committee (SRC) informed that the institution employs 1096 tax inspectors as of November 8, 2016, whose salary varies from AMD 158,000 to AMD 215,000 depending on the position and work experience. A similar inquiry to the Georgian Revenue Service revealed that 1466 tax inspectors, including 127 tax managers, with an average salary of GEL 1020 (about AMD 200,000) have been registered as of October 31, 2016. The database of the RA SCR contains information about 80,903 registered organizations, while the Georgian service controls 412,497 companies functioning in various business areas, which is five times more than in Armenia. That’s to say, one tax inspector in Georgia is charged to observe the activity of 281 organizations, while one Armenian inspector traces 74 firms. It turns out that the efficiency of the Armenia’s tax service is four times less that Georgia’s. If an Armenian tax inspector worked with the same number of firms as a Georgian one, there would be 288 inspectors in Armenia (by 808 less than currently employed). So, over AMD 1,5 billion would be saved to the state budget only with the surplus of tax inspectors’ wages. If these 288 employees received a salary equivalent to Georgian average standard, annual saving would amount to AMD 1,387 billion, not including utility bills, transport and office costs, as well as other expenses. Besides, Armenian and Georgian customs services hire 606 and 1466 inspectors respectively. In Armenia, these employees’ salary is equal to that of tax inspectors, while in Georgia, customs officers receive GEL 1141 (about AMD 220,000). It means that the number of customs officers in Georgia is 2,3 times more than in Armenia. However, it should be noted that Armenia has 5 customs points in all, while Georgia operates customs stations with Armenia, Russia, Turkey and Azerbaijan, has 3 international airports and 2 big ports with several customs points. Thus, the scope and pressure of work in the two countries is simply incomparable. Kristine Kyurklyan / PanARMENIAN.Net Most popular in the section Armenia’s “useless” manpower Small and medium sized businesses weigh in on consequences of war Hybrid banknotes New markets opening for home-grown products More articles in this section 4 rules for business success An ultimate guide Reduction of personnel and tax collection growth State Revenue Committee changes its policy Countries and goods that boosted Armenian export in 2016 Record figures | Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. Biden honors resilience of Armenian people on April 24 U.S. President Joe Biden has issued a statement on the 109th anniversary of the Armenian Genocide. Ex-Karabakh leader moved to solitary confinement cell in Baku, his son says David Vardanyan is the son of former Karabakh leader Ruben Vardanyan who who is currently imprisoned in Azerbaijan. |