Armenian parliament postpones enforcement of paperwork requirement to small and medium businesses

The law on turnover tax was revised last year lowering the turnover tax for vendors with annual sales of up to 58 million drams ($125,000) from 3.5 percent to 1 percent, but small business owners were to do the mentioned paperwork or face heavy fines. 

The government argued the change was meant to crack down on tax evasion by big business, but vendors say they cannot comply with this requirement because their suppliers usually refuse to provide them with receipts and invoices. The revised law was to come into force in 2014 October but after a series of demonstrations staged by vendors in September and October the government was forced to postpone its enforcement until February 1. 

After fresh protests this year Prime Minister Hovik Abrahamyan met with protesters and reportedly agreed to postpone the enforcement of the law until July 1. 

The lawmakers today supported the postponement motion by 79 votes, 19 MPs abstained. 

One day earlier nongovernment parliament factions Prosperous Armenia, Heritage, Orinats Yerkir and Armenian National Congress said they would abstain from voting, since they are disagreed to the postponement until July 1, but would not vote against it since this is still better than current rules. 

Armen Rustamyan, head of Armenian Revolutionary Federation/ Dashnaktsutiun faction, said that its MPs will vote in favor of the bill, since they are against the current rules. --0-----