ARMENIAN PARLIAMENT PASSES IN FIRST READING LEGISLATIVE PACKAGE ON ALL-ARMENIAN BANK

NOYAN TAPAN

Dec 24, 2008
YEREVAN

The RA National Assembly passed in the first reading the bill on
All-Armenian Bank, and based on it, a package of additions to several
laws with 103 votes in favor and 3 votes against at the December 24
special session. "Heritage" faction’s members present at the session
voted against the bill.

The parliament discussed in first reading the government’s legislative
package which includes the bill on privileged payments and the bills
on additions and amendments to a number of laws on tax sector.

According to the main speaker, deputy chairman of the State Revenue
Committee adjunct to the government Aharon Chilingarian, the proposed
amendments and additions can be conditionally divided into 2 groups:
some of them are aimed at encouraging investments and local production
and simplifying the tax legislation for economic entities, while
the others propose specification to the current laws and elimination
of the shortcomings in the legislation. An increase in the current
rates is envisaged in 2 cases. In particular, the fixed payments for
cigarettes are increased. The fixed payments for games with prizes
are also increased: the monthly payment for a gaming table is fixed
at 4 million drams instead of the current 2.5 million drams.

The bill on privileged payments proposes allowing natural persons,
who are not considered as private businessmen and are engaged in some
types of entrepreneurial activity, to be registered at a tax body
and pay privileged payments. The bill is related to persons engaged
in small production or providing personal services, in particular:
repair of domestic appliances, production of footwear, clothes,
leather items, carpets, musical instruments, oragnization of sport
groups, and tutoring.

A privileged payment is a compulsory and gratuitous payment
substituting for income tax and value added tax (VAT). It is a lump-sum
payment in the annual amount of the privileged payment for each
type of activity. It makes 60,000 drams (about 200 USD) in Yerevan;
42,000 drams in regional centers; 30,000 drams in other cities and
settlements within a radius of 20 km from Yerevan; 24,000 drams in
rural areas, and 12,000 drams in remote regions. Privileged payments
shall be made by persons if the turnover from services provided by
them and work done by them (except for work done by hired workers)
in the previous year does not exceed 2.5 million drams.