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It is proposed to recognize invalid the privilege of reducing from the profit tax money the total of the additional salary and the payments equalized to it on new jobs created within the framework of the business programme by the resident profit taxpayers carrying out business programme approved by the decision of the Government.

The RA Deputy Minister of Finance Arman Poghosyan presented the amendments being proposed in the Tax Code for debate at the sitting of the NA Standing Committee on Economic Affairs.

The Deputy Minister noted that a policy was announced aimed at the expansion of the taxation base and the removal of the ineffective operating tax privileges set by the legislation. It is a long time the RA Ministry of Finance takes inventory of the tax privileges, the further use of which is not substantiated from the viewpoint of expenditures-revenues analysis. It is also characteristic that during about 10 years of setting privilege in practice it has no wide use among the entities (during the mentioned period only 4 organizations made use of the privilege). In this context, the Deputy Minister raised the problem of the entities’ awareness lack.

“On one hand we have cases, when the entities expect tax privileges, on the other hand there has been legislative opportunity for several years, but they don’t make use of it,” the Deputy Chair of the Committee Babken Tunyan said and added that this is a draft on removing the unused privilege. Quoting the fact of awareness lack mentioned by the Deputy Minister Arman Poghosyan, Babken Tunyan proposed the attendees to postpone the debate of the initiative. He expressed hope that during this period the entities will be informed about the draft on the privilege or removing the privilege, and they will respond.