Restrictions on Individual Discounts in Armenia

Individual discounts offered to buyers in Armenia will be restricted by legislation. This was stated to Sputnik Armenia by Tigran Markosyan, a member of the Competition Protection Commission.

Individual discounts are common in the sale of furniture, building materials, and several other products, particularly in small shops. To prevent businesses from trying to evade taxes under the guise of discounts, the commission aims to propose that such discounts should not exceed 10% of sales. The proposed amendment is expected to be discussed in the coming 2-3 months.

It is noted that this does not exempt businesses from the obligation to honestly pay taxes. Even if the specified 10% is applied to goods sold below cost, the State Revenue Committee may impose penalties, Markosyan clarified.

The commission will particularly monitor the discounts announced by large retail chains that hold a dominant position in the market.