ArmInfo. The gambling industry in Armenia may be subject to a 10% turnover tax in addition to existing taxes and duties. At its meeting on February 5, the RA National Assembly Committee on Economic Affairs issued a positive opinion in the first reading on the amendments to the Tax Code submitted by Hayk Sargsyan, a member of the NA from the ruling Civil Contract faction. According to the author of the legislative initiative, over the past 13 years, the turnover of gambling, online gambling, virtual gambling, lotteries, betting, and activities to organize online betting has been growing at an alarming rate.
Sargsyan mentioned that in the past 5 years, several legislative changes have been implemented to restrict the gambling business and increase the tax burden. However, statistical analysis indicated that these measures have not been sufficient, and there is a need to further increase the tax burden. The draft proposes to introduce a turnover tax of 10% on the sector in addition to the current taxes and duties.
Deputy Chairman of the NA Committee on Economic Affairs Babken Tunyan, highlighted the importance of considering all existing risks in connection with the presented initiative. He emphasized that gambling companies are legitimate business entities in Armenia and are protected by laws. He expressed concern that that imposing strict tax measures could potentially drive these companies out of Armenia. They may relocate to other countries and continue their activities, possibly even in Armenia's virtual space. The deputy urged the bill's author to withdraw the submitted document for further review at the next meeting of the commission.. Tunyan noted that increasing tax burden does not always result in higher budget revenues.
