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Last year the legislative package envisaging amendments and addenda to the Tax Code was adopted in the first reading. It is designed to solve a number of issues financial-banking sphere, making improvements, filling in the existing gaps. However, in the provision concerning the mortgaged real estates in the banks problems emerged because of the change of the cadastre values, causing additional tax obligations for the banks. The Deputy Chair of the Standing Committee on Economic Affairs Babken Tunyan said about this.

On January 30, the NA the Standing Committee on Economic Affairs organized a discussion before the second reading on the package of the draft laws on Making Amendments and Addenda to the RA Tax Code and on Amending the RA Civil Code authored by the Government, where representatives from the executive body and from the banks working in Armenia took part.

Babken Tunyan and the RA Deputy Minister of Finance emphasized in the context of the noticeable changes occurred in the real estate market in and inflation in the recent period.

Presenting the envisaging amendments and addenda by the legislative package, Arman Poghosyan noted that it is proposed by the decision of the minimum rules of the taxation bases by the Value Added Tax (VAT) of the real estate alienation deals and the profit tax to set exception in two cases from the common approach for the banks and credit organizations.

The representatives of the banks introduced the situation created in the field, noting that the estate market value essentially differs from the cadastre value. According to them, by the adoption of the package of the draft laws the existing irregularities will be specified.

During the discussion a reference was made to the alienation deals, the existing risks and their management.

Summing up the discussion, Babken Tunyan thanked the participants for having effective discussion, noting that the aim is finding balanced solution.

An agreement was reached to organize one more work discussion in the near future for discussing a number of other problems occurred in the banking sphere.