The National Assembly of Armenia adopted the draft on Making Amendments and Addenda (providing communities with a privilege to define eight types of local taxes) to the RA Law on Taxes on Monday. The amendments, which defined eight types of local taxes created controversy two weeks ago, and now the government redrafted the ‘taxing packages’ and, according to the new draft, only two types of taxes will be added.

The Government of Armenia, the author of the draft, initially submitted the following types of additional taxes: hotel, trade, stagnant construction, farmland, commercial property development, public building advertising space, transportation hubs, and use of public space.

However, at the National Assembly the draft was criticized even by coalition members, and the Government had to change it, removing six types of taxes and leaving only two types – hotel and transportation hubs taxes.

The draft, which according to the government will strengthen the activities of local administration bodies, and will promote their independence, was adopted with a vote of 71-20 and 7 abstaining.

The Armenian Revolutionary Federation (ARF) Dashnaktsutyun faction voted against it, whereas Heritage abstained, reasoning that the package was not complete.

According to ARF MP Vahan Hovhannisyan, his party is for the promotion of independence of local administration bodies; however, it needs a serious treatment.

“If it was possible to reject six types of taxes at once, it means that the draft law had not been written properly,” Hovhannisyan says.

Independent MP Viktor Dallakyan, who voted against the draft, believes that the draft was passed under pressure from government and authorities.

“Everybody was against it before, and now they came and voted for it (taxing package) quietly. I was against it, because now during this crisis, when people hardly survive, such changes (amendments) will even worsen the situation,” Dallakyan told ArmeniaNow.