Protest against tax changes takes place outside government building

YEREVAN, January 23. /ARKA/. Representatives of small and medium-sized businesses are holding a protest in front of the Armenian government building on Thursday. They are dissatisfied with changes to the Tax Code, which include an increase in the turnover tax rate.

“At this rate, small and medium businesses in Armenia will simply disappear. Are there no experts in the government who could discuss everything and understand what measures need to be taken?” one of the protesters said.

He added that, due to the new requirements, the tax burden will significantly increase for many SMEs, leading to serious difficulties, including potential closures.

According to amendments that took effect on January 1, 2025, SMEs with an annual turnover of less than 115 million drams will pay a 10% turnover tax if their goods (or services) are not documented. If they are documented, the tax rate is reduced from 1.5% to 1% of turnover.

On the new taxes

The amendments to the Tax Code involve changes to the tax regime for certain sectors of professional activity, shifting them to the value-added tax and income tax system. It is expected that the changes will add approximately 13 billion drams to the state budget.

Representatives of the expert community and businesses have reached a clear conclusion: these changes will only result in an increase in the cost of services (accountants, lawyers, and other similar categories) by up to 40%, and this burden will ultimately fall on citizens.