An MP in Armenia has proposed a new 10% online gambling turnover tax, as part of a general reform to the country’s tax code.

The draft law, proposed by Civil Contract MP Hayk Sargsyan, would be introduced on top of existing gambling taxes and levies, and was designed with the explicit goal of restricting the gambling industry.

The Standing Committee on Economic Affairs endorsed the proposal in a vote after meeting yesterday (5 February).

Sargsyan highlighted the sector’s fast-paced growth in recent years, suggesting betting volume has increased by 440 times between 2010 and 2023.

However, he said, the total taxes and duties collected by the government in this period has only increased 26 times.  

He said: “The aim of the draft law is, if the volumes do not change, to provide about AMD 100bn (€241.9m) more annual income to the state budget.”

Armenia tax hike faces pushback from Ministry of Finance

Sargsyan added the government’s Committee of Ministers has also approved the floated tax hike despite opposition from the deputy minister of finance.

The deputy minister said the ministry’s current position is that it is not appropriate to increase taxes on the activities of casinos, gambling, online gambling, lotteries, totalisers and Internet totaliser organisations.

A parliamentary summary of the meeting said: “According to the key rapporteur, a number of legislative amendments have been made over the past five years, which were aimed at restricting the gambling sector and increasing the tax burden.

“However, according to him, as the analysis of statistics shows, the steps taken are not sufficient, and it is necessary to increase the tax burden again.”

Other MPs in the committee said there is a need for more information and monitoring, as well as new tools and regulations.  

The committee’s deputy chair Babken Tunyan proposed the draft law be postponed for two months, pending further discussion and government input.

Share