Small enterprises should not be brought to VAT field: MP

Aysor.am has conducted an interview with economist, PAP faction MP Sergey Bagratyan about draft tax bill, the consequences it will have, the negative and positive sides.

- Mr Bagratyan, how effective do you think  the envisaged changes in the tax legislation are? Can they become a basis for economic revolution?

- These changes should be discussed. These are not revolutionary changes. There are logical changes and those which need to be analyzed. Some issues are in the phase of discussion, we are waiting for the session of the economic committee to discuss it thoroughly and present our approaches and position. As of now, the changes are not global.

- Some opponents claim that it would have been good to free small and medium-sized business from taxes to promote the economic growth. Do you agree with it?

- We often say that small and medium-sized business must have privileges, must be given wider opportunities, but it does not mean that they must be completely tax-free. There must be some criteria for them too regarding their turnover, number of employees.
In case of new legislation these criteria must be clearly formulated.

- Will the relief of small and medium-sized business from taxes increase the burden of big tax payers?

- If you are saving something, you must ignore another thing. It is impossible to create ideal conditions for all tax payers. On the account of who we are going to relieve the small and medium-sized business from taxes. It is done on the account of other tax payers. If not to make equal distribution the issues will raise with big taxpayers. There is a need to analyze the balance.

- Mr Bagratyan, the discussed changes propose bringing a number of service providing companies to VAT field. Won’t it result in increase of shadow in the sector or price growth?

- There is such a concern. I would not like small companies enter the VAT field. We must define which are the big companies and which the small. Then it will become clear which one can pay bigger taxes and which smaller. If a company provides services to 1-2 small enterprises and is in the limits of 24 million, it should not be brought to VAT field.