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Monday, June 18, 2018

Chilingaryan: Tax burden on SMEs may be lifted with systemic economic changes

Karen Chilingaryan, the chairman of the non-profit Consumers' Consulting Center, said at a news conference last week that the tax burden on small and medium-sized businesses in Armenia could only be lifted if the government makes systemic economic changes.

On Oct. 1, the turnover tax rate is expected to be lowered for trade companies. Small and medium-sized enterprises will also be obligated to provide paperwork, and all entrepreneurs are encouraged to do so, as well, ARKA reports.

"The lowering of turnover tax is big advantage for SMEs, but on the other hand, the duty to provide paperwork for all goods makes them dependent on large importers, who may provide or not provide papers," Chilingaryan said.

Small and medium-sized business owners will also be able to file formal complaints online about large companies that reject requests for papers. Chilngaryan said approximately one-third of small businesses in the country ceased operations last year, due to a lack of profits, according to ARKA.

The Armenian government made amendments that would change the tax law on June 12. The government also created six laws that would provide companies cooperating with small and mid-size businesses with a more favorable tax environment.