Systemic changes in Armenia’s economy needed for easing SMEs’ tax burden - expert

Systemic changes in Armenia’s economy needed for easing SMEs’ tax burden - expert

YEREVAN, June 26. /ARKA/. Karen Chilingaryan, chairman of the Consumers’ Consulting Center NGO, speaking Thursday at a news conference, said it would be possible to ease small and mid-scale businesses’ tax burden in Armenia only after implementation of systemic changes in the economy.  

Turnover tax rate is planned to be lowered for trade companies on October 1, 2014. It is also planned to oblige SMEs to make necessary paperwork, but on the same time, to introduce a facilitated procedure of surveillance over compliance with this requirement. 

“The lowering of turnover tax is big advantage for SMEs, but on the other hand, the duty to provide paperwork for all goods makes them dependent on large importers, who may provide or not provide papers,” Chilingaryan said adding that it would be better to oblige all entrepreneurs to provide papers. 

Although the new scheme includes a mechanism allowing small and medium entrepreneurs to complain also online about the large companies that rejected their requests for papers, he said, owners of small shops are unlikely to complain about huge companies.    

Asked by ARKA News Agency’s correspondent how successful small and medium companies’ activities are now, Chilingaryan said that about every third small company in the country stopped functioning over the last year because of the lack of profits.   

On June 12, the Armenian government approved amendments to the turnover tax law and also a package of six other laws designed to create more favorable tax environment for companies engaged in trade and small and medium family businesses. --0----

16:09 26.06.2014

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