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At June 10 extraordinary sitting of the Standing Committee on Economic Affairs, two legislative initiatives were debated in the second reading.

As the Chairman of the RA State Revenue Committee Rustam Badasyan presented, it is proposed by the draft law on Gaming Activity Regulation and the package of the enclosed ones to define 10% the rate of the income tax in case of big win exceeding 5 million drams, the tax agent’s system will also work. The taxation of the very wins will be regulated by the draft. In case of the remaining all wins the calculation methodology will annually function.

The provisions connected with the operator’s choice procedure of the sphere regulation were specified for ensuring the flexibility of the operator’s choice procedure by the next amendment.

The subject of the regulation of the draft law on Making Amendments and Addenda to the RA Tax Code and the enclosed presented ones is to be the privileged systems of the turnover tax and the micro-entrepreneurship tax.

The Deputy Chair of the Standing Committee on Economic Affairs Babken Tunyan informed that work debate was held with the participation of the concerned entities and unions on the proposing amendments by the legislative package.

According to Babken Tunyan, during the debate clarifications on the raised concerns were presented, in some cases distinct amendments were made. It was noted that the turnover tax rates will increase for certain spheres, besides, some kinds of activity, as for example, the lawyer and notary services, will move from the turnover tax regime to general taxation system, i.e. value added tax (VAT) regime.

“The main directions of the proposing amendments refer to the increase of the sales tax rates, but in parallel an opportunity will be given in order to decrease the expenditures of wider scope in case of documentation,” the RA NA Deputy Minister of Finance Arman Poghosyan. He informed that with the participation of the Ministry of Finance and the State Revenue Committee one more debate was held on the issue.

The legislative initiatives debated in the second reading were endorsed.