Share of SME in Armenia’s total taxes may grow from 4.5-5 % to 10.7 %- Safaryan says

Share of SME in Armenia’s total taxes may grow from 4.5-5 % to 10.7 %- Safaryan says

YEREVAN, May 23. / ARKA /. Vazgen Safaryan, the chairman of the Union of Domestic Commodity Producers, urged today the government to help push through a package of bills it has developed to boost small and medium-sized businesses  saying that their passage by the parliament would push the share of small and medium-sized businesses in Armenia’s total taxes from 4.5-5 % to 10.7 %. 

The package of bills was sent to the government’s consideration, he said.

"We propose to raise the taxable annual income for small and medium-sized businesses from the current 58.35 million to 100 million drams," he said.

Since January 1, 2013 small and medium-sized enterprises with an annual turnover up to 58.35 million drams have been paying turnover tax that has replaced the previous income or profit taxes.

Safaryan also proposed to reduce the amount of sale tax from the current 3.5% to 2-2.5%. He also called on the government to establish free economic zone in borderline villages, particularly in Tavush region, exempting enterprises in these villages from value added and income taxes.

He said many local residents who have achieved success outside of Armenia, are ready in case of a favorable tax climate, to open canning and food processing plants in their native villages, also production of carpets and textiles, and sell these products to countries where they have succeeded.

He argued that this policy would create 20-25 additional jobs in each village to cut out-emigration of local labor force.

Vazgen Safaryan said the government should also cut the price of irrigation water for these communities from current 11 drams per 1 cubic meter to the symbolic 1-2 drams. 

He also said the government subsidies released each year for purchase of fertilizers from the neighboring Georgia could be channeled into Vanadzor chemical plant in Armenia to set up local production of fertilizers. -0-


15:46 23.05.2014

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