SME in Armenia accounted for 43% of GDP in 2012: economy ministry
01.03.2013,
17:08
Small and medium-size enterprises (SME) in Armenia accounted for 43% of the GDP in 2012, Armen Yeganyan, Head of SME Development Department at Economy Ministry, said Friday.
YEREVAN, March 1. /ARKA/. Small and medium-size enterprises (SME) in Armenia accounted for 43% of the GDP in 2012, Armen Yeganyan, Head of SME Development Department at Economy Ministry, said Friday.
“As to income distribution, it is a good result. The current dynamics lets us think there are optimistic tendencies in SME development in Armenia,” he said.
SME share in the GDP stood at 43% in 2011 as well. Yeganyan said the government is undertaking active steps in advancing this result particularly by facilitating tax administration.
He reminded about “Turnover tax” which was enacted on January 1. The new turnover tax facilitates tax procedures for small businesses.
Yeganyan also noted it will not be economically beneficial to exempt micro business from taxes as it was earlier recommended by the head of Union of Home Producers.
Earlier Vazgen Safaryan, Head of Union of Domestic Producers of Armenia, suggested that the turnover tax levied from the companies with an annual 58-million trading turnover should be reduced from 3.5% to 3%. Moreover, the enterprises which have just 4-5 employees, should be completely exempted from taxes.
“Government attempts to give as less exemptions as possible in this sphere, but it uses some other tools –Free economic zones are ones of these tools. During our meetings with SME representatives, entrepreneurs raise issues not related to tax exemptions, but tax administration facilitation,” he resumed. ($1 – 409.22 drams). --0-
