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ECONOMIST SAYS SMALL BUSINESSES SHOULD BE ALLOWED TO CHOOSE BETWEEN OPTIONS FOR PAYING TURNOVER TAX
YEREVAN, February 3. / ARKA /. Small and medium businesses in Armenia
could be allowed to choose between paying a 1 percent turnover tax
and providing tax authorities with documentary evidence of their
wholesale purchase deals with suppliers or a 3.5 percent turnover
tax without providing evidence, economist Vilen Khachatryan said today.
The government-designed law on turnover tax was revised last year
lowering the turnover tax for vendors with annual sales of up to 58
million drams ($125,000) from 3.5 percent to 1 percent, but small
business owners were to provide tax authorities with documentary
evidence of their wholesale purchase deals with larger firms or face
heavy fines.
The government argues the change is meant to crack down on tax
evasion by big business, but vendors say they cannot comply with this
requirement because their suppliers usually refuse to provide them
with receipts and invoices.
The revised law was to come into force in 2014 October but after a
series of demonstrations staged by vendors in September and October
the government was forced to postpone its enforcement until February
"This is one of the possible options -to make concessions and to
maintain the principle of voluntariness," Khachatryan said in an
interview with Sputnik-Armenia radio station".
He said the enforcement of the law turnover tax will again be postponed
for some time by the government that will attempt to find a solution -
either through concessions or offering an alternative option.
After fresh protests this year by owners of small businesses
prime minister Hovik Abrahamyan met with protesters last Friday
and reportedly agreed to postpone the enforcement of the law until
July 1.-0-
http://arka.am/en/news/business/economist_says_small_businesses_should_be_allowed_ to_choose_between_options_for_paying_turnover_tax/#sthash.DqGJMKqC.dpuf
YEREVAN, February 3. / ARKA /. Small and medium businesses in Armenia
could be allowed to choose between paying a 1 percent turnover tax
and providing tax authorities with documentary evidence of their
wholesale purchase deals with suppliers or a 3.5 percent turnover
tax without providing evidence, economist Vilen Khachatryan said today.
The government-designed law on turnover tax was revised last year
lowering the turnover tax for vendors with annual sales of up to 58
million drams ($125,000) from 3.5 percent to 1 percent, but small
business owners were to provide tax authorities with documentary
evidence of their wholesale purchase deals with larger firms or face
heavy fines.
The government argues the change is meant to crack down on tax
evasion by big business, but vendors say they cannot comply with this
requirement because their suppliers usually refuse to provide them
with receipts and invoices.
The revised law was to come into force in 2014 October but after a
series of demonstrations staged by vendors in September and October
the government was forced to postpone its enforcement until February
"This is one of the possible options -to make concessions and to
maintain the principle of voluntariness," Khachatryan said in an
interview with Sputnik-Armenia radio station".
He said the enforcement of the law turnover tax will again be postponed
for some time by the government that will attempt to find a solution -
either through concessions or offering an alternative option.
After fresh protests this year by owners of small businesses
prime minister Hovik Abrahamyan met with protesters last Friday
and reportedly agreed to postpone the enforcement of the law until
July 1.-0-
http://arka.am/en/news/business/economist_says_small_businesses_should_be_allowed_ to_choose_between_options_for_paying_turnover_tax/#sthash.DqGJMKqC.dpuf