This bill recommends exempting brokerage services in the securities market from VAT, said one of the bill’s co-authors, MP from My Step ruling bloc Artak Manukyan at the Armenian parliament on Thursday.

The bill was prepared by MP from the My Step bloc Varazdat Karapetyan, Babken Tunyan and Artak Manukyan.

“The bill is aimed at enhancing the securities market. In particular, we propose amendments to 4 articles. Until January 2018, brokerage services were essentially exempt from value added tax. Subsequently, in 2018, due to changes in the Tax Code, these services became subject to value added tax. And we, in fact, suggest returning to the mechanisms of the previous settlement,” he said.

The MP noted that they studied the experience of different countries and never met the idea of ​​taxation of brokerage services related to securities.

The second change, according to the MP, relates to the services of market makers. “Essentially, they provide liquidity for potential buyers and sellers. And we are also trying to free these services from VAT, ”the MP added.

In the third amendment, deputies propose exempting bonds from income tax. The fourth amendment, parliamentarians propose to remove tax on listed shares.

According to Artak Manukyan, the maximum initial negative impact that may arise as a result of the adoption of this bill is AMD 60 million.