>>New tax code is an effort to stop tax evasion>>
JAN. 26 2015 (The Conway Bulletin) — A new tax code in Armenia is upsetting the very people it is supposed to be helping.
The government has decided to reduce the tax for small business, those earning less than $122,000, to 1% of their sales from 3.5%. The downside of the new law is that the traders and shopkeepers have to document more closely their sales.
Media reported that hundreds of traders demonstrated in front of the parliament building against the new tax laws. Their problem is the introduction of the extra paperwork.
The bottom line is that the government wants to increase tax receipts. To do this it has decided to crackdown on tax evasion and the fiddling of receipts. And this is where the problem lies. The Armenian traders’ will have to fill in more paperwork and, they say, will actually earn less under the new tax code because they will have to declare more of their sales.
The small traders have also complained that they are being used as guinea pigs before the new tax code is rolled out to bigger businesses.
With the Armenian economy reeling from the turmoil in Russia, the government is desperate to highlight good news. It has already had to postpone the introduction of the new tax code from November until Feb. 1. The issue is becoming increasingly contentious.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 216, published on Jan. 28 2015)