YEREVAN, May 29. / ARKA /. Armenia’s government has rejected today a bill drafted by a group of lawmakers from the Prosperous Armenia Party that calls for exempting trade and production companies from turnover tax in the first three years of their activity.
Finance Minister Gagik Khachatryan argued that exempting companies from turnover tax without mandatory documenting of all transactions was unacceptable. He said passage of such a law would not help solve the problem of documentation, but would also affect the tax collection rate.
He disagreed with the arguments of the authors of the bill that the exemption from turnover tax would create new jobs.
"One has to take into account that about 77 % of those paying turnover tax are individual entrepreneurs without hired employees," Khachatryan said.
The minister said the government is now discussing with employers organizations a set of questions related to tax legislation and invited all interested political forces to take part in them. -0-