Armenian SRC Uncovers 325 Billion Drams in Shadow Tax Revenue Over Nine Months

YEREVAN — Eduard Hakobyan, head of Armenia’s State Revenue Committee (SRC), announced that approximately 325 billion drams in concealed tax revenue were uncovered during the first nine months of this year — a 97% increase compared to the same period in 2024.

“The amount of ‘hidden’ taxes reached 108 billion drams, representing a 52% increase,” Hakobyan stated at a press conference on Friday, noting that these results were achieved through the use of digital tools.

He explained that shadow tax activity in Armenia is most prevalent in the construction and trade sectors. Overall, he added, the government’s efforts to combat the shadow economy are being implemented across multiple areas.

“The turnover of payment documents rose by 15%, while the number of issued documents increased by 17%. The volume of non-cash payments in retail and services grew by 55%, and the total funds involved increased by 32%. Around 2,000 unregistered employees were identified — a 28% rise compared to the same period last year,” Hakobyan said.

He also noted that the number of operational and investigative activities declined by 25% compared to last year, although the focus of these efforts has become more targeted.

In May 2025, Hakobyan estimated that the shadow economy accounted for roughly 20% of Armenia’s domestic economic activity. The State Revenue Committee and the Ministry of Finance currently estimate shadow income levels at 200–300 billion drams — still significantly lower than several years ago, when the figures were two to three times higher.

($1 = 383.05 drams)