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Armenian Tourist Operators Discontented With Tax Policy

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  • Armenian Tourist Operators Discontented With Tax Policy

    ARMENIAN TOURIST OPERATORS DISCONTENTED WITH TAX POLICY

    YEREVAN, APRIL 8, NOYAN TAPAN. Head of the Department of Indirect
    Taxes of the State Tax Sevice Andranik Muradian stated at the April 7
    discussion that since 2004, tourism into Armenia has been exempt from
    VAT, whereas VAT was imposed on tourism out of the country last year.
    According to him, these changes aim to promote tourims. Yet this
    explanation did not satisfy the members of the Armenian Union of
    Tourist Operators into the Country who had initiated the discussion.
    In particular, they underlined the necessity of granting certain tax
    privileges to tourist operators in case of participating in exhibitions
    and running advertizing campaign abroad. They expressed an opinion that
    the maximum amount of representative costs per day abroad (which makes
    50 thousand drams or abou 101 USD) needs reviewing. Director of the
    company First Travel & Service Karen Andreasian touched upon another
    sensative issue of the Armenian tourist operators. According to him,
    tourist operators who own buses have to pay a fixed tax in the amount
    of 120 thousand drams for renting a bus for a day. K Andreasian
    stressed that this makes most tourist operators without autopark
    bear part of the tax burden, which in its turn leads to an increase
    in the tourism package cost. In his view, such taxation will result
    in the closure of almost all the tourist agencies in Armenia. So it
    was proposed that VAT should be introduced instead of the fixed tax
    in case of motor transport rent. The Union's executive director
    Arayik Vardanian told NT correspondent that such discussions with
    representatives of the Tax Service and other state bodies will make
    it possible to solve somewhat the problems in the sphere. He said
    that certain legislative improvements and a favorable investment
    field are necessary to promote tourism into the country.

    From: Emil Lazarian | Ararat NewsPress
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