The World Bank (WB) has proposed that the Armenian Government raise taxes for the country’s mineral resource industry. The WB’s proposals have been incorporated in the bill on “Mineral Resources” presently on the RA Parliament’s agenda. The Government put the bill on the agenda of the Parliament’s special session last December. Later, pressed by the Opposition, it had to withdraw the bill. The pressure by the industry’s lobby must have played its role. According to the information at NEWS.am’s disposal, the mineral resource industry’s lobby is the second strongest in Parliament after the alcoholic beverage lobby.

NEWS.am asked WB representatives to make comments. Jean-Michel Happi, the World Bank Country Manager for Armenia, said that Armenia’s mining industry contributes to economic diversification, increases incomes and creates jobs. In Armenia however, this industry has a number of problems involving environment, social accountability and taxation. Licensing and competition procedures need completing as well.

Gohar Gyulyumyan, a WB economist, said that the WB’s proposals were incorporated in the bill “On mineral resources” on the Parliament’s agenda. The bill provides for a 2- and 3-fold increase in nature management taxes. Also, fixed payments to be set will allow taxes to be raised as international prices rise. WB experts believe the Armenian mining industry was not, to a sufficient extent, involved in forming the state budget when the international prices were rising from 2004 through 2008.