The Government also approved the draft laws "On Making Amendments to the Tax Code of the Republic of Armenia" and "On Making Amendments to the Law on State Duty". The need for approving the draft laws is conditioned by the aim of making the royalty system for metallic minerals more responsive in response to international metal prices and more progressive. The draft proposes to stop the application of state duty for the export of copper-molybdenum concentrate, as well as molybdenum export starting from January 1, 2023. It is also proposed to make the system more progressive by maintaining the general principles underlying the current royalty system. In particular, it is proposed to revise the royalty calculation formula so that there is no increase of the royalty tax burden for companies with a 10% profit margin. The goal of this approach is to have a system in which the tax burden on royalties does not become problematic in terms of ensuring the continuity of production and economic activities of companies in the conditions of declining international metal prices and, consequently, profitability of companies.
May 06, 2022 at 13:33