Law on Income Tax To Be Amended For the Interests of Cement Manufacturers

The Armenian Government has initiatied the amendment of the Law on Income Tax in the interest of Armenian cement companies, writes 168 Zham daily, citing their confidential sources. Note, that the government has proposed to the National Assembly to amend the Law on Income Tax, having the tax rate for those exporters with incomes of 50 trillion AMD ($104,450,000+/-) or higher reduced to 2% amount of the taxpayers' gross income, in stead of the previous 10%.

According to 168 Zham’s information, the Armenian authorities have come to an agreement with a wealthy Russian businessman over consolidating their forces in the construction sector and exporting 50 trillion AMD worth of products.

“For that exact purpose the Law on Income Tax is to be amended. Most probably, it refers to cement manufacturers. The two cement exporters in Armenia, the Hrazdan cement factory and Ararat Cement, are mostly idle due to the lack of demand. And now, the Russian businessman will assume the right to administer the two factories and secure their products' export,” writes the paper.

Note, that the Hrazdan cement factory is owned by businessman Mikhail Baghdasarov, while Ararat Cement’s owner is Prosperous Armenia Party leader, MP Gagik Tsarukyan.