Expert finds amendments to turnover tax law devastating to Armenian small and medium enterprises

YEREVAN, September 24. /ARKA/. Amendments to the turnover tax law will be devastating to small and medium enterprises, Gagik Makaryan, chairman of the Union of Employers of Armenia, said Wednesday at a news conference.  

Turnover tax rate for economic entities is planned to be lowered from 3.5% to 1% on October 1, 2014, but particular paperwork will be made obligatory for small and mid-scale businesses. Along with that, the inspections of compliance with the demand will be facilitated. 

“The amended law, if any will mean end to everything,” Makaryan said. “The government is trying to solve the problem created by large entrepreneurs at the account of small and medium enterprises – this burden lies heavy on small and mid-scale businesses. Small and medium entrepreneurs will be left with no option but to shift to other area, but what they can be engaged in when the government leaves room for nothing.”

Several hundred SME representatives gathered yesterday outside the government building in a protest against the government-proposed legislative change. 

The Prime Minister Hovik Abrahamyan advised protesters to pass their written demands on to Armen Alaverdyan, the first deputy finance minister. He said he will discuss their demands with the deputy minister and a decision will be made. --0----