On June 13, at the NA Standing Committee on Economic Affairs the legislative revised package on Making Addenda and Amendments to the Tax Code of the Republic of Armenia and on Amending the Law on State Duty was debated.
According to the RA Deputy Minister of Finance Arman Poghosyan, the subject of the initiative regulation is the review of the royalty system being paid by the metal mining and operating companies, and in parallel the withdrawal of the state duty use designed for the metal concentrate export.
Accordingly, it is proposed to stop the use of the copper and molybdenum concentrate, as well as the state duty of the molybdenum export, and maintaining the general principles laid on the basis of the royalty system functioning at present, making the system more progressive.
It is suggested to review the accounting resolution of the royalty rate in a way that in case of 10 percent profitability there will not be tax overload rise on royalty by the royalty paying organizations. With this approach it was aimed to have a system, in conditions of which the international prices of metals and, therefore, in cases of decrease profitability level the tax load on royalty in terms of provision of production-economic activities of the organizations will not be problematic, in the conditions of more than 10 percent high profitability it will be filled in the resolution functioning of the royalty rate accounting additional component, as a result of which, additional royalty with 15 percent rate will be accounted.
The Government presented some proposals for revising the package, which the Committee accepted. The Committee also presented a proposal, which was accepted by the author. In particular, the deputies suggested to raise the profitability threshold up to 15 percent against up to 10 percent proposed by the Government.
The Committee endorsed the revised draft.
The NA Standing Committee on Economic Affairs also debated in the second reading the draft law on Making Addenda to the RA Tax Code. As the Deputy Chairman of the RA State Revenue Committee Artur Manukyan informed editorial amendments were made after being passed in the first reading.
The purpose of the draft is the definition of the term delay of the accounted taxes for the taxes importing for the omission for internal consumption in the customs procedure (VAT, excise tax and environmental tax) for the payment opportunity of deferral payment.
The Committee also endorsed this draft law. The drafts will be debated during the regular sittings of the National Assembly to be convened on June 14.
National Assembly of the Republic of Armenia
