Advertising Companies Pay 600 Million Drams in Taxes, Appeal to Yerevan Mayor

Recently, more than 10 companies engaged in external advertising activities have appealed to the Mayor of Yerevan regarding new criteria for the distribution of outdoor advertising. The companies presented justifications indicating that the implementation of such criteria without compromises could lead to the devastation of the sector or the cessation of activities.

In the application addressed to the Mayor of Yerevan, situational compromise solutions have been proposed. It's important to note that companies engaged in external advertising pay more than 600 million drams in state fees (taxes, local levies) annually, and due to new restrictions, not only will it become impossible to collect the specified amount, enter it into the state-local budget, and allocate it to various city programs, but it may also lead to the loss of hundreds of jobs and the cessation of companies' activities, along with other negative consequences.

It is evident that advertising, and particularly outdoor advertising, is an integral part of the market economy and has a multiplicative effect; therefore, an evolutionary model of changes in this sector may be more effective and minimize negative impacts. Advertising companies have expressed their willingness to meet with city authorities to discuss this issue.