Tunyan Explains the Purpose of 2% Cashback

The main goal of providing a 2% cashback for cashless trade is to increase transparency and reduce the shadow economy. Babken Tunyan, the Vice Chairman of the Economic Affairs Committee of the National Assembly, stated this during a conversation with reporters in the parliament.

Addressing the question of why cashback is not planned for payment of utility services or financial obligations, he noted that purchases made with cards in supermarkets and stores are recorded, visible, and taxes are paid on them, which increases the possibilities for the state budget. According to him, there is no shadow problem in the sphere of utility services and financial transactions, and that is why they are not included in the program.

Tunyan also clarified that the 2% cashback for all retail trade means that part of the money will not be directed only to retail trade. Commenting on the Central Bank President's statement regarding the reduction of intermediary fees for trade transactions made with bank cards, Tunyan said that previously banks charged an additional 1-3% from trade points, depending on the type of card, which was an additional burden especially for small businesses. He stated that a decision has been made to reduce those fees by almost half, which will reduce the burden on business operators.

He mentioned that the approximately two billion drams loss resulting from this change will be taken by the banking system, funded by its previous years' profits. Referring to the tariffs of banking services and the profits of banks, Tunyan noted that there exists a large number of banks and competition in Armenia, which should contribute to tariff regulation. He also announced that legislative initiatives regarding the taxation of the banking system are planned for the near future, with details to be presented later.