Experts suggest concrete steps for government to support small and small businesses
09.10.2018,
15:43
Armenia’s tax legislation should be revised to take into account the interests of small and medium-sized businesses, said Vladimir Amiryan, a coordinator for the Network for Protection of Business Interests that comprises 18 business and trade unions, chambers of commerce and a number of public organizations.
YEREVAN, October 9. /ARKA/. Armenia’s tax legislation should be revised to take into account the interests of small and medium-sized businesses, said Vladimir Amiryan, a coordinator for the Network for Protection of Business Interests that comprises 18 business and trade unions, chambers of commerce and a number of public organizations.
During an October 2 discussion on reforming the country’s tax legislation Armenian Prime Minister Nikol Pashinyan said that reforms should contribute to what he described as ‘positive changes’ in taxpayers’ behavior, and also help simplify the taxation system and improve the investment environment.
According to an expert of Armenia’s Chamber of Commerce Gagik Poghosyan, the largest problem for small and microbusiness is the often changing tax laws because entrepreneurs do not have time to adapt not only to the new tax code, but also to the taxation administration.
He said the issue of classification of businesses is very important for small and micro businesses because of the lack of clear-cut criteria that will help the private sector to find the right solutions when it comes to taxation matters, as well as raise the effectiveness of support to SME and prevent ineffective use of funds.
He said also that establishment of centers for marketing support for small and micro businesses will help with the export of products by SMEs.
According to another expert Suzanna Tsaturyan, it is necessary to introduce a new culture for financial inspectors when their functions should be not to punish a legal entity or to look for violations, but to create a friendly atmosphere in order to provide advice on the proper organization of work.
According to another expert Paylak Tadevosyan, entrepreneurs need real, rather than declared, simplified taxation and a procedure for granting of privileges to small businesses.
He said the first thing to do is to revise the concepts of “small” and “microbusiness ”, especially that a new taxation clause will come into force on January 1, 2019. ‘We propose not to lower the ceiling of tax benefits for enterprises with annual turnover of 150-200 million drams. Besides, a review of taxation of a share in a business for small enterprises is necessary, as this leads to frequent documentary inconsistencies and additional checks," he said.
According to Tadevosyan, the government has repeatedly declared about tax cuts or even exemption of small business in the border areas from taxes, but in practice they are forced to fulfill other obligations, which are comparable with the size of the previous taxation.
"We propose that one general tax rate be introduced that will be the maximum for all types of taxation," he said. –0-
During an October 2 discussion on reforming the country’s tax legislation Armenian Prime Minister Nikol Pashinyan said that reforms should contribute to what he described as ‘positive changes’ in taxpayers’ behavior, and also help simplify the taxation system and improve the investment environment.
According to an expert of Armenia’s Chamber of Commerce Gagik Poghosyan, the largest problem for small and microbusiness is the often changing tax laws because entrepreneurs do not have time to adapt not only to the new tax code, but also to the taxation administration.
He said the issue of classification of businesses is very important for small and micro businesses because of the lack of clear-cut criteria that will help the private sector to find the right solutions when it comes to taxation matters, as well as raise the effectiveness of support to SME and prevent ineffective use of funds.
He said also that establishment of centers for marketing support for small and micro businesses will help with the export of products by SMEs.
According to another expert Suzanna Tsaturyan, it is necessary to introduce a new culture for financial inspectors when their functions should be not to punish a legal entity or to look for violations, but to create a friendly atmosphere in order to provide advice on the proper organization of work.
According to another expert Paylak Tadevosyan, entrepreneurs need real, rather than declared, simplified taxation and a procedure for granting of privileges to small businesses.
He said the first thing to do is to revise the concepts of “small” and “microbusiness ”, especially that a new taxation clause will come into force on January 1, 2019. ‘We propose not to lower the ceiling of tax benefits for enterprises with annual turnover of 150-200 million drams. Besides, a review of taxation of a share in a business for small enterprises is necessary, as this leads to frequent documentary inconsistencies and additional checks," he said.
According to Tadevosyan, the government has repeatedly declared about tax cuts or even exemption of small business in the border areas from taxes, but in practice they are forced to fulfill other obligations, which are comparable with the size of the previous taxation.
"We propose that one general tax rate be introduced that will be the maximum for all types of taxation," he said. –0-
