MP-proposed amendments to Tax Code radically changed 

ArmInfo.The amendments to the Tax Code and the package of related laws proposed in the second reading by Hayk Sargsyan, a member of the National Assembly of  Armenia from the ruling Civil Contract faction, have undergone  radical changes. The previous amendments concerned the application of  an additional 10% turnover tax on the gambling business.

At the plenary session of the National Assembly on March 6, during  which the package was adopted in the second and final reading, the  deputy noted that as a result of active discussions with the  government and with RA Prime Minister Nikol Pashinyan, a decision was  made to replace the turnover tax with a state duty.  Moreover, the  bill will come into force on April 1, and not six months later, as  was originally envisaged.  Currently, there is a provision in force  according to which a state duty of 0.1% for each bet is set for  acquiring the right to place a bet in lottery games, and 0.175% for  games with a win. The innovation provides for increasing the amount  of the state duty to 0.2% and 0.35%, respectively.

"The head of the executive power also proposed establishing a  progressive increase in these payments until the launch of the  monitoring operator system. The Ministry of Finance has already  formulated a version of the corresponding proposal. It provides that  from April 1 the fee should be doubled. From January 1, 2026, if we  do not have an operator by that time, the state duty will be  increased once again," the speaker noted.

Sargsyan said that if companies take the path of artificially  reducing turnover, he will introduce a new legislative amendment  aimed at increasing the tax burden.

The speaker also noted that as a result of the amendments,  approximately $2.7 million will be received monthly in the country's  state budget.

In turn, Deputy Minister of Finance of the Republic of Armenia Arman  Poghosyan said that the country's government does not object to the  application of the proposed amendments. He called for the approval of  the legislative package in its current form.

The day before, RA Prime Minister Nikol Pashinyan also addressed the  issue of gambling. During the government hour in the National  Assembly of the Republic of Armenia, he said that the Cabinet does  not intend to introduce "repressive" tax rates against gambling  companies, but does not intend to turn a blind eye to existing  violations. "At one of the meetings, I said that these companies  should close if the safety of society is on the other side of the  scale. But emotions are one thing, and decisions should be rational.   Charging a company a tax of 105% of its profit is wrong," Pashinyan  noted, pointing out the importance of forming a monitoring operator  that will record all bets in online casinos. The selection of the  operator through a tender is planned for 2025. Pashinyan emphasized  that the new mechanism will make it possible to block access to  gaming sites for socially vulnerable citizens receiving state  benefits.