YEREVAN, February 27. /ARKA/. Vazgen Safaryan, Head of Union of Domestic Producers of Armenia, suggests that the turnover tax levied from the companies with an annual 58-million trading turnover should be reduced from 3.5% to 3%.
“I think even 0.5% can make a difference for companies. Also, it will foster development of small and medium-sized business in the republic,” he said.
Safaryan also said earlier the National Assembly was considering 3% turnover tax rate, but in the end, the lawmakers confirmed 3.5%.
According to Safaryan, taking into account the current difficult economic situation in Armenia, when there are just few stimuli for small and medium-size business development, it is necessary to exempt from taxes those small enterprises which have just 4-5 employees.
“I think it is necessary to exempt from taxes all those enterprises the annual turnover of which is just nearly 12-13 million drams, especially start-ups,” he said.
Since January 1, 2013 the turnover tax has been imposed on economic entities with an annual turnover of up to 58.35 million drams. Previously they paid profit or income taxes.
For retail trade companies it is in the amount of 3.5% of their annual income, for notary firms the tax is 20% , 10% for rental, royalties, sale of property and assets and 5% for other activities. -0-