An additional 7.7bn AMD (about U.S. $20m) were transferred to Armenia’s state budget as income tax, and 6.8bn AMD (about U.S. $18) as social payments in the first half of 2010.

The RA Ministry of Finance informed NEWS.am that this is the second largest increase in budget revenues after VAT. Income tax revenues totaled 34.5bn AMD (about U.S. $90m), and social payments 54.7bn AMD (about U.S. $145m).

The increase is accounted for by an increase in average monthly wage and reduced share of off-the-books payments. This July the average monthly wages has been 104,000 AMD against 100,000 AMD last July. In USD terms, however, the average monthly wages have decreased. Specifically, the 100,000 AMD was equal to U.S. 306 last July, whereas 104,000 AMD is equal to U.S. $280 this July.

Under the program of pension reforms, from January 10, 2014, income tax and social payments will be replaced by a tax rate of 26%.