Armenia Considers Raising Gambling Taxes Amid Revenue Discrepancy
Armenia is contemplating a tax hike for gambling companies. A proposed bill aims to address the disproportionate growth in betting volume versus tax revenue.
Proposed Tax Increase
Armenian MP Hayk Sargsyan has proposed a new law that would impose a 10% turnover tax on gambling companies.
This tax would be in addition to existing taxes and duties. The Standing Committee on Economic Affairs debated the proposal.
Disparity in Revenue Growth
Sargsyan emphasized the significant increase in betting volume between 2010 and 2023.
He stated that betting had increased by over 440 times, while taxes and duties only increased 26 times. This discrepancy prompted the need for revised tax policies.
Insufficient Existing Measures
Sargsyan explained that current measures to restrict the gambling industry and increase taxes have not been effective enough.
He believes a further tax increase is necessary to address the imbalance. His figures show the current tax structure is inadequate.
Potential Budget Impact
The MP highlighted that the draft bill could generate approximately 100 billion AMD ($0.25 billion) in additional annual income for the state budget.
This potential revenue boost underscores the significance of the proposed tax increase.