The Armenian National Assembly has passed a controversial bill amending the Tax Code in its first reading, with 64 votes in favor, 2 against, and 19 abstentions. The bill, proposed by ruling Civil Contract party MP Hayk Sargsyan, seeks to impose a 10% profit tax on the gambling sector, Sputnik Armenia reports.

During discussions, Sargsyan emphasized that while the gambling sector's turnover was $35 million in 2010, with tax contributions amounting to $2.6 million (7.2%), by 2023, the turnover had surged to $15.8 billion, yet taxes collected remained at just $67 million—merely 0.4% of total turnover.

On March 4, Sargsyan reiterated in parliament that his proposal to introduce a 10% turnover tax on bookmakers and gambling businesses aligns with Prime Minister Nikol Pashinyan’s stance on increasing the tax burden on the industry.

The reform is expected to boost state revenues by approximately 13 billion drams ($33 million) annually.

To become law, the bill must still pass a second reading and receive final parliamentary approval.

On February 5, the bill was discussed in the Standing Committee on Economic Affairs under tense circumstances. Sargsyan even clashed with fellow party members, insisting that the vote should not be delayed, as low tax collection harms the state.