ArmInfo. On December 9, the Parliament of Armenia, in the second and final reading, amended the law "On State Duty", which will allow the exemption in the form of an exception to the "air tax" to extend to new air routes from Armenia.
According to the chairman of the Civil Aviation Committee of the Republic of Armenia Tatevik Revazyan, the benefits will be provided to the airline for a period of three years with the right to prolong it for another two years if it starts to operate flights on a new route. If another airline appears on the market that declares its intention to operate flights in the same direction, the period of privilege from 3 years will be reduced to 2.5 years. Thus, Tatevik Revazyan continued, the government sets itself the task of attracting new air carriers to the Armenian market that will operate flights on new routes. At the same time, the volume of budgetary deductions will not only not decrease, but also increase due to an increase in the frequency of flights. In addition, the application of tax incentives will improve the competitive environment and reduce the possibility of the emergence of termination risks, which are estimated at less than 5%.
As previously noted by the Minister of Territorial Administration and Infrastructures Suren Papikyan, today the revenues from the "air tax" to the state budget are annually about 11-12 billion drams. However, there is reason to believe that the provision of benefits for this type of tax will have a positive effect, especially given that this will facilitate the opening of new areas and stimulate existing ones. In addition, due to the multiplier effect, the state budget will receive additional revenues. According to the minister, the draft law applies to all airlines that will begin implementing flights to new destinations in which no flights have been flown from Armenia over the past 12 months. "This will create a competitive atmosphere," Suren Papikyan pointed out.