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As the Deputy Minister of Finance Arman Poghosyan has informed, as a result of the adoption of the draft law on Making Addendum to the RA Tax Code it is expected to give an opportunity to the profit tax payers to decrease the spoiled goods obtained for the purpose of commercial (buy and sell) activities.

The draft law submitted by the Government was debated in the first reading at the NA regular sitting.

As Arman Poghosyan informed, the draft was elaborated taking into consideration the businessmen’s proposal. It will have a good influence on the business environment.

“Because of absence of law, the economic entities have accumulated certain amount of spoiled product. We propose to take tax from the profit tax base by two percent of gross income of that reserve,” the Deputy Minister noted.

The deputy Gevorg Papoyan was interested in implementing the administration in order not to have speculations by the businessmen. The Deputy Minister of Finance Arman Poghosyan clarified that not only the qualitative losses, but the remaining other kinds of losses is also allowed to decrease from the taxation base in case of documenting the order established from the Government. There is an appropriate decision, which establishes the procedure and the documentation framework, which is necessary to adopt the losses for taxation. In the event of the adoption of the draft, the Government will adopt relevant addenda to regulate this new arising relation and the demands of documentation.

The member of the NA Standing Committee on Economic Affairs Tsovinar Vardanyan presented the endorsement of the Committee, noting that business environment will be improved by the adoption of the draft