A new World Bank report says that making taxes fairer and investing in education quality can help Armenia reach its revenue, education, and sustainable growth targets.

The document says that while Armenia has improved its tax collection in recent years, with the tax to GDP ratio reaching around 24% of GDP on average for 2021-2023, it remains short of the 25% target in the government’s program.

To achieve this target while also addressing inefficiencies and fairness of the tax system, the WB recommends broadening the regular tax regime, so more businesses are taxed similarly, narrowing the coverage of the turnover tax regime and modernizing international tax rules to make them fully applicable to the digital economy.

The report also recommends introducing tax deductions and other measures for low wage-earners.