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Small business owners demand to cancel revised law on sales tax
YEREVAN, January 30. / ARKA /. Several hundreds of Armenian small
vendors gathered again today outside the government building to
protest against the revised law on turnover tax that comes into force
from February 1.
The revised law has lowered 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 will have 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
Yesterday small business owners marched from the government building
to the presidential residence blocking for a brief time the main road
in downtown Yerevan. Police had to use force to unblock the road.
Today the protesters threatened to shift to 'radical measures' unless
their voice is heard by the government, saying they would file
applications en mass to suspend their activity demanding also a
meeting with prime minister Hovik Abrahamyan.
The prime minister Abrahamyan agreed to meet with 15 protesters, the
government press office reported. It quoted Abrahamyan as saying that
the government will not make any steps that run counter to the
interests of the society.
Representatives of small businesses were said to have suggested that
the revised law on sales tax become voluntary, that the minimum annual
sales ceiling be raised and that the number of inspections by tax
authorities be cut.
Before wrapping up the meeting the head of the government said all the
proposals would be discussed by the government and presented to the
society.
In a related development, deputy finance minister Vakhtang Mirumyan
said the ministry has reached a compromise with small business owners.
Speaking at a cabinet session he said small vendors will not have to
provide 'detailed list of goods" and will have to indicate only
'categories of goods.' He said the ministry has developed a clear-cut
inventory procedure for this.
Mirumyan said concessions are provided for cases where traders
purchase goods directly from foreign suppliers, but bring them in by
forwarding companies and therefore can not provide invoices of
suppliers.
He said small business owners will be freed also from providing
documentary evidence for buying agricultural products for resale.
"In fact, we observe all our arrangements and we have no information
about new demands by small business owners,' he said.-0-
http://arka.am/en/news/economy/small_business_owners_demand_to_cancel_revised_law _on_sales_tax/#sthash.xUaoqlFs.dpuf
YEREVAN, January 30. / ARKA /. Several hundreds of Armenian small
vendors gathered again today outside the government building to
protest against the revised law on turnover tax that comes into force
from February 1.
The revised law has lowered 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 will have 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
Yesterday small business owners marched from the government building
to the presidential residence blocking for a brief time the main road
in downtown Yerevan. Police had to use force to unblock the road.
Today the protesters threatened to shift to 'radical measures' unless
their voice is heard by the government, saying they would file
applications en mass to suspend their activity demanding also a
meeting with prime minister Hovik Abrahamyan.
The prime minister Abrahamyan agreed to meet with 15 protesters, the
government press office reported. It quoted Abrahamyan as saying that
the government will not make any steps that run counter to the
interests of the society.
Representatives of small businesses were said to have suggested that
the revised law on sales tax become voluntary, that the minimum annual
sales ceiling be raised and that the number of inspections by tax
authorities be cut.
Before wrapping up the meeting the head of the government said all the
proposals would be discussed by the government and presented to the
society.
In a related development, deputy finance minister Vakhtang Mirumyan
said the ministry has reached a compromise with small business owners.
Speaking at a cabinet session he said small vendors will not have to
provide 'detailed list of goods" and will have to indicate only
'categories of goods.' He said the ministry has developed a clear-cut
inventory procedure for this.
Mirumyan said concessions are provided for cases where traders
purchase goods directly from foreign suppliers, but bring them in by
forwarding companies and therefore can not provide invoices of
suppliers.
He said small business owners will be freed also from providing
documentary evidence for buying agricultural products for resale.
"In fact, we observe all our arrangements and we have no information
about new demands by small business owners,' he said.-0-
http://arka.am/en/news/economy/small_business_owners_demand_to_cancel_revised_law _on_sales_tax/#sthash.xUaoqlFs.dpuf