YEREVAN, September 18. / ARKA /. Armenia is not ready for abolition of taxes for small and medium-sized enterprises, according to Karen Gevorkyan, the deputy director of the National Centre for the Development of Small and Medium-Sized Enterprises.
"Tax exemption is a much more complex issue than it may seem. Of course, everybody realizes that such a move could provide a strong incentive for the development of SMEs. However, it should be enforced based on serious research and preparedness of the system for it,” he said to journalists.
According to Gevorgyan, there are various estimates indicating that the tax burden is not the only obstacle to the development of SMEs.
He said the easing of the tax burden for SMEs needs to be done gradually and step by step as the experience shows that when it is done abruptly it has no effect.
Gevorkyan said as a provisional solution the government introduced turnover tax and patent fees, which significantly reduce the tax burden and simplify taxation administration.
On January 1, 2013 the government introduced turnover tax for small and medium-sized enterprises with an annual turnover of up to 58.35 million drams, replacing by it the previous profit and income taxes. The amount of this tax ranges from 3.5 % of the annual income, set for trade outlets to, 20% for notary offices. ($ 1 - 409.61 drams). -0-