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Postponed Again: Government sets new date for application of controv

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  • Postponed Again: Government sets new date for application of controv

    Postponed Again: Government sets new date for application of
    controversial tax sales law

    ECONOMY | 01.02.15 | 12:31
    http://armenianow.com/economy/60240/armenia_sales_tax_law_delayed_government_traders


    Small traders in Armenia will not be required to provide documentary
    evidence of their transactions with wholesale suppliers for another
    five months, it emerged over the weekend.

    On Saturday, the Armenian government decided to postpone the
    application of a corresponding provision of the controversial sales
    tax law until July 1. The decision followed days of protests staged by
    representatives of small and medium-sized companies demanding that the
    law that was due to take effect on February 1 be reconsidered.

    After the Friday protest, which was the fourth during the week,
    Armenian Prime Minister Hovik Abrahamyan met with representatives of
    the protesters and promised to provide solutions to the problems they
    raised. It is expected that before July 1 the government will work out
    and present new mechanisms that will ensure a smooth enforcement of
    the law.

    The government's latest decision will need to be approved by the
    National Assembly that is expected to make appropriate amendments in
    the law.

    The law in question actually reduces the sales tax for small and
    medium-sized companies from 3.5 to just 1 percent, but sets stricter
    conditions to traders in terms of documenting their wholesale
    purchases from larger companies. The government believes the measure
    will both help small businesses and make it much harder for
    large-scale Armenian importers of goods to evade taxes.

    Most traders, however, believe this will only complicate their work as
    they see more risks of being fined by tax authorities.

    The application of the law that originally was to come into effect on
    November 1 was already once delayed till February 1 as small traders
    held a series of demonstrations in front of the government building in
    October.

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