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.
