YEREVAN. – The Armenian state budget subsidies, subventions, and loans need to be levied with the value added tax (VAT) and be included in the gross income so as to be levied with profit tax.      

Deputy Finance Minister Suren Karayan introduced, on Tuesday at the National Assembly, the draft on making amendments in Armenia’s laws on VAT and profit tax.  

The MP’s made no objections and did not even pose any questions to the Government.

In line with these amendments, the loans—or subsidies—, which are allocated to the businesses and in order for them to work with the state-approved prices, will be taxed. Such subsidies are especially allocated to companies that supply irrigation and drinking water.