13/06/2014 10:50
Turnover tax reduction may lead to inflation
At the regular session yesterday the Armenian government approved the draft law on reduction of turnover tax from 3.5% to 1%. No doubt, it will ease the tax burden of small and medium enterprises. Yet experts say that it will also lead to inflation.
Chairman of SME Cooperation Association NGO Hakob Avagyan who was involved in negotiations on turnover tax reduction expressed this opinion during a talk with ‘Haykakan Zhamanak’ daily yesterday. The increase in prices of goods depends on the ‘appetite’ of business entities, Avagyan said.