ArmInfo. The introduction of an equalization (flat) income tax scale will not make life easier for those who receive salaries of up to 150 thousand drams. In a sense, they will even suffer. This opinion was expressed on November 9 at a press conference in Yerevan by the chairman of the Association of Accountants of SMEs, a member of the Extended Council for Improving the Revenue Policy of the Ministry of Finance of Armenia Vahagn Hambartsumyan.
Currently, as Hambartsumian recalled, the following scale of taxation is in effect in Armenia: those who receive a monthly income of up to 150 thousand drams pay 23%, from 150 thousand to 2 million drams - 28%, and more than 2 million drams - 36% . From July 1, 2019, Armenia plans to switch to a flat income taxation system, which, regardless of the amount of wages, will set the income tax at a rate of 23%. Moreover, until 2023, the rate will gradually decrease to 20% - from January 1, 2020 - to 22%, from 2021 - to come to 21%, in 2022 - to 20.5%, and from 2023 - to 20%. In the case of the transition to new adjustments already in 2019, the tax losses of the state treasury are estimated at 27.5 billion drams. Further, each percent, with other things being equal, will "cost" the state budget 12.5 billion drams.
From 2020 to 2022 the government also offers equal rates of income tax and dividend tax for citizens of Armenia and foreigners, setting them at the level of 23% (from 20% to 18% income tax and from 10% to 5% dividend tax - Ed.). Losses in terms of tax revenues of the budget in case of establishing equal conditions for residents and non-residents on the tax on dividends will be 1-1.3 billion drams.
In order to compensate tax losses of the budget as a result of lowering income tax and income tax rates, Armenia intends to expand the list of excisable goods, raising also the excise rates on cigarettes and alcohol-containing products, as well as revise the taxation of gambling and environmental protection payments. "Taking into account the fact that, for example, the list of excisable goods will also include drinks with a sugar content of 5 g or more per 100 g of product, it turns out that for the end user - an employee with a salary of up to 150 thousand drams, the tax burden will increase, because their children will buy the same lemonade at a higher price ", - he explained. In the meantime, according to the official data of the Armenian SRC(State Revenue Committee), it is the lion's share of hired workers - 64.9% receive a salary of up to 150 thousand drams, 34.8% receive a salary of up to 2 million drams, and employees with a salary above 2 million drams 3%.
Earlier, ArmInfo reported that the Ministry of Finance of Armenia on the single portal of legal acts e- draft.am submitted the draft amendments <On Amendments and Additions to the Tax Code of the Republic of Armenia>. As part of the initiative, the Ministry of Finance proposes to increase the rates of excise tax on tobacco products and alcohol from 1 July 2019 at priority rates. It is also planned to increase the minimum price for vodka and ethyl alcohol - from the current 2500 drams per 1 liter of 100% alcohol to 6 thousand drams. From July 1, 2019, the project proposes to expand the list of excisable goods, including drinks with a sugar content of 5g or more per 100 g of product, increase the excise rate on beer, and from January 1, 2020, review the environmental tax rate for emissions of pollutants into the car's atmosphere with an engine power of 301 horsepower and more - instead of the current 50 drams for 1l.s set 150 drams.
From January 1, 2020, Armenia plans to completely abandon the patent tax system with the transition to a system of general taxation. From January 1, 2020 it is also proposed to revise the taxation of the organization and conduct of gambling (including games on the Internet), sweepstakes (Internet sweepstakes). In particular, it is envisaged to tax the gambling business with a more fair tax - in the general tax field. The government also plans to revise the principles of taxation of gains in the framework of this activity, establishing that personal incomes are subject to income tax, and the organizer of gambling as a tax agent bears the obligation to calculate and calculate income tax.