KARABAGH ECONOMY MOVES AHEAD

STEPANAKERT, JULY 29, ARMENPRESS:Nagorno Karabakh prime minister, Anoushavan Danielian, said last Friday that the average monthly wages in Karabakh have increased from 23,000 Armenian drams to 28,000 (approximately $50) during the last three years. The prime minister also announced that the minimum monthly salary has doubled to 10,000 drams and the economy of the republic has reported a 20% growth. Danielian said the most noticeable improvement over the last several years was in foreign investments in Karabakh, ver $25 million has made its way into the republic from investors from the United States, Australia, France, Belgium, Switzerland, Russia, Iran, England, Spain, Lebanon and other countries to carpet industry, production of watch manufacturing accessories and diamond cutting and refining. Danielian noted, in particular, that the industrial growth in the first five months of 2002 was 13 per cent. The growth in exports in 2000 amounted to 118 per cent, in 2001 - 265 per cent and during the first five months of 2002 - 440 per cent. Danielian also stressed that the main thrust of the economic changes made in 2000-2002 was to attract foreign investment, creating a more attractive tax field to help this, along with making fuller and more efficient use of energy, water, land and mineral resources. Tax rates were reduced by 500 million drams. The 25 per cent profit tax in 1999 was reduced to 15 per cent in 2000, 10 per cent in 2001 and five per cent during the first five months of this year. The income tax rate has been reduced from 25-30 per cent to five per cent. The land tax has been reduced from 15 to six per cent of the current land register value. A single tax on trade amounting to 2.4 per cent of the volume of sales came into force from 1 July 2002. As a result of tax reform, it proved possible in 2001 to collect 2 billion 382 million drams, which is 92 million drams more than in 1999.