Armenian government to introduce taxes on luxury cars, increase income tax
02.11.2011,
22:01
The Armenian government has prepared a legislative package to introduce a tax on luxury cars, increase by 50% taxes on expensive alcoholic beverages and increase also the income tax.
YEREVAN, November 2. / ARKA /. The Armenian government has prepared a legislative package to introduce a tax on luxury cars, increase by 50% taxes on expensive alcoholic beverages and increase also the income tax.
"We have prepared a package of legislative proposals to improve the business environment, and have already discussed them with our coalition partners. The main idea is to create more favorable conditions for small and medium-sized businesses and increase the tax burden for businesses making big profits," Prime Minister Tigran Sargsyan said on Tuesday during parliament hearings on next year’s budget.
According to him, the government will also introduce progressive tax scale.
"We offer a 5% increase in income tax for companies with revenues of more than 2 million drams, setting it at 25%," he said, adding that administrative procedures will be simplified for small businesses earning up to around $25,000, while rules for large businesses and the banking sector would be toughened.
He also said it is proposed to increase by 50% taxes on expensive alcohol, which make 15% of the overall consumption.
The Prime Minister also mentioned the introduction of "luxury tax", noting that it will apply to cars costing more than $90,000 and is expected to generate one billion drams in additional revenue.
"We also are discussing a 50% increase in fixed payments for casinos that would increase revenues by 2 bullion drams," he added.
"At the same time we will establish tax advantages for large investment projects that are submitted to the government consideration," said the prime minister.
"We have also developed a program to introduce an electronic inventory across the country, electronic notary, as well as the introduction of e-shopping," - he added.
The 2012 draft budget calls for 910 billion drams in revenues and 1.042.5 trillion drams in spending.
The amount of revenue is projected to increase by 6.8% from this year's budget (852.4 billion drams). The spending is expected to grow by 41.5 billion drams. Some 86.1% of the spending (897.8 billion drams) is projected as current expenditure; 13.9% or 144.7 billion drams are projected as net non-financial expenditure. Some 46.2% are projected as social spending (education, health, social security), 19.8% as defense, public order and national security spending, 13.2% are planned for economic boost, 4.5% are projected to pay off Armenia's state debt. Besides, 3.1% of the blueprint budget is projected as official grants to communities and 2% as government reserve fund. -0 -
"We have prepared a package of legislative proposals to improve the business environment, and have already discussed them with our coalition partners. The main idea is to create more favorable conditions for small and medium-sized businesses and increase the tax burden for businesses making big profits," Prime Minister Tigran Sargsyan said on Tuesday during parliament hearings on next year’s budget.
According to him, the government will also introduce progressive tax scale.
"We offer a 5% increase in income tax for companies with revenues of more than 2 million drams, setting it at 25%," he said, adding that administrative procedures will be simplified for small businesses earning up to around $25,000, while rules for large businesses and the banking sector would be toughened.
He also said it is proposed to increase by 50% taxes on expensive alcohol, which make 15% of the overall consumption.
The Prime Minister also mentioned the introduction of "luxury tax", noting that it will apply to cars costing more than $90,000 and is expected to generate one billion drams in additional revenue.
"We also are discussing a 50% increase in fixed payments for casinos that would increase revenues by 2 bullion drams," he added.
"At the same time we will establish tax advantages for large investment projects that are submitted to the government consideration," said the prime minister.
"We have also developed a program to introduce an electronic inventory across the country, electronic notary, as well as the introduction of e-shopping," - he added.
The 2012 draft budget calls for 910 billion drams in revenues and 1.042.5 trillion drams in spending.
The amount of revenue is projected to increase by 6.8% from this year's budget (852.4 billion drams). The spending is expected to grow by 41.5 billion drams. Some 86.1% of the spending (897.8 billion drams) is projected as current expenditure; 13.9% or 144.7 billion drams are projected as net non-financial expenditure. Some 46.2% are projected as social spending (education, health, social security), 19.8% as defense, public order and national security spending, 13.2% are planned for economic boost, 4.5% are projected to pay off Armenia's state debt. Besides, 3.1% of the blueprint budget is projected as official grants to communities and 2% as government reserve fund. -0 -
