H. Abrahamyan: We attach great importance to development of SMEs

Armenian Prime Minister Hovik Abrahamyan received today representatives of small and medium-sized enterprises (SME) who staged a protest outside the Armenian government, the press office of the government said.

SME representatives thanked the prime minister for the reception and then made their observations about the amendments to the Law on Turnover Tax that will take effect on October 1.

It is planned to reduce turnover tax from 3.5% to 1% for business entities that engage in trade. The change will be made on 1 October, 2014, with accurate circulation of documents being the necessary condition for activities of SMEs.

Hovik Abrahamyan heard the arguments of the businessmen and assuried them that the law aims to prevent big taxpayers from evading taxes, while SMEs will not suffer from that law.

In his words, the government’s purpose is to prevent small and medium enterprises from becoming a platform and tool for tax evasion by large companies.

He stressed that checks at small and medium enterprises will be conducted in case of a risk, while big taxpayers will be at the center of attention.

“The government has relieved your tax burden to help you,” Abrahamyan told SME representatives, adding that the decision was not made by the government alone, but it was repeatedly discussed with representatives of small and medium businesses.

“The Armenian government attaches great importance to development of SME and for this reason it takes such steps,” the prime minister noted.

At the conclusion of the meeting, an agreement was reached that the entrepreneurs will submit their proposals in writing to First Deputy Finance Minister Armen Alaverdyan.

As was reported earlier, over 400 representatives of SMEs engaged in trade staged a protest outside the government this morning. They were discontented with amendments to the Law on Turnover Tax to take effect on October 1, 2014.

Prime Minister Hovik Abrahamyan met with the protesters outside the government building. At his suggestion they formed a group of 20 people and later discussed the problem with the prime minister in his office. Yet they did not end their protest action.

The protesters made a decision to hold the next action on Thursday, during the regular weekly session of the government. They intend to go on strike if the Law on Turnover Tax takes effect on October 1.