YEREVAN. - The income tax in Armenia will become more progressive, Deputy Chairman of the State Revenue Committee (SRC) Vakhtang Mirumyan said in the parliament Thursday, introducing the new draft Tax Code.

According to him, the principle of “higher salary, higher tax” will be reinforced.

In the conditions of 187,000 AMD average salary (approx. $390 USD), the tax payment  will be slightly reduced (46,000 instead of 47,000 AMD). The tax load will equal at 204,000 AMD, and will then grow further.

In other words, the receivers of average salary will pay 340 AMD less tax (slightly less than the average cost of a cup of coffee in a café).

Now persons with 120,000 AMD salary pay 24.4 percent per month, while those with a salary ranging from 120,000 to 2 mln, pay 26 percent. Salary of above 2 mln requires payment of 36 percent income tax.

Thus, the tax significantly grows only starting from 2 mln AMD. And only about 800 people in the republic get that much salary.

According to Mirumyan, it is proposed to slightly reduce the tax of relatively low salaries, and raise them if the salaries are high.

Thus, persons receiving salaries of up to 120,000 AMD (approx. $250 USD) will have to pay 23 instead of 24.4 percent. The income tax for salaries ranging from 120,000 to 1 mln AMD will be 28 percent. In case of 1 mln and higher salaries, the income tax will amount to 33 percent.