Armenia’s new tax code to strike hard at small and mid-scale businesses

YEREVAN, June 21. /ARKA/. Armenia’s new tax code will strike hard at small and mid-scale businesses, Mane Tandilyan, a member of Lusavor Hayastan party, told journalists on Monday. 

On June 15, the Armenian National Assembly passed at the first reading the new tax code. 

“In fact, the legislative changes are not aimed at easing SMEs’ tax burden, and they also will have negative impacts on the middle class,” Tandilyan said.  

She is convinced that the changes related to excise tax will drive prices for petrol and other excisable goods up, and as a result, commodity shipment will become more expensive. 

, more than 80% of residents will have their income reduced.  

“It is unacceptable to increase income tax in a country where 30 percent of the population lives in penury, needless to say that this may give a comfortable environment for shady dealings,” she said.

Tandilyan thinks that imposing taxation on dividends will lead to a total control over activities of small and medium entrepreneurs and will affect the country’s investment attractiveness.  

“It can be said as a whole that the bill has not been properly justified and its adverse impacts on the middle class and on businesses have not been gauged,” she said. 

Tandilyan said in this connection that Lusavor Hayastan party intended to enhance public awareness of the proposed legislative changes over the summer. She also expressed the party’s willingness to support public protests.  

The bill is to be put on the National Assembly’s floor in September for a second-reading passage, she said, and before that the authorities should withdraw the document or should alter it substantially. --0----