Epress.am News from Armenia
Today, a few delegates of small and medium-sized business owners and entrepreneurs protesting and demanding the nullification of the Law on Turnover Tax finally met with Prime Minister Hovik Abrahamyan. Yesterday, the Government’s Reception of Citizens and Appeals department head Alexander Ghazaryan had told protesters that the PM was too busy to meet them. After exiting the Government building, one of the delegates expressed his impressions that the PM was "on our side.” During the meeting the entrepreneurs demanded that they raise the trade turnover minimum threshold, in addition, the delegates proposed that those who wish work according to the law’s old version and pay 1%, not 3%, without inventorizing their products.
“We are going to create a group and keep Mister Abrahamyan informed about what we think. We told Armen Alaverdyan (Deputy Finance Minister) that he needs to go (resign), that's for sure. Until Monday noon, Mister Abrahamyan will announce his decision,” said the entrepreneur.
The protest participants decided that they will be at the National Assembly on Monday, in order to follow the development of the discussion during the parliamentary hearing, then go to the Government building to receive the PM’s promised response.
Before the meeting with the PM, a few Prosperous Armenia Party MPs approached the gathered entrepreneurs to discuss their concerns. Mikayel Melkonyan announced that they, as well as party leader Gagik Tsarukyan, are supporting them.
“We’re for the right solutions. When they were planning the decision back in May and June, they thought that there would be positive economic indicators. But at the end of the year we saw what we had. When Monday’s parliamentary hearing begins, I’m going to appeal in order for the NA Speaker to invite a consultation. We will invite the Minister of Finance, and all officials, and make a decision so the issue is resolved. The law affects 120-130,000 people, how can one not act seriously to this? If they want a document (invoice), let them ask the large importers and receive it. What, they don’t know where those are?” said Mikayel Melkonyan.
The entrepreneurs restarted their fast growing protests from last September-October, which were halted after the government promised to delay the compulsory inventorization of products until February 1st of 2015. The protest restarted yesterday, because the government refused to include other amendments to the law.
Last year, the protesters against the Law on Turnover Tax stated that they do not have possibility of inventorizing their products, because large distributors often do not give them invoices. In addition, in the case of inventorizing, their turnover would be over the legal minimum threshold of 58.3 million AMD ($126,000), so they would be forced to pay VAT, which would be impossible for small and medium sized businesses. Among the business owners, some demand that they sharply increase the threshold, while others demand the law be nullified.
Those who work in the gold trade have stressed that once the new law comes into effect they would be forced to immediately halt their work. Certain experts have noted that the inclusion of the Law on Turnover Tax would entirely wipe out small and medium sized businesses, while the members of government claim that the purpose is to fight against the illegal practices in large businesses and that they are not prepared to consider the law void.
During last year’s protest, the merchants received backlash from the owners of large marketplaces they rent space from. A few large marketplaces threatened to fire (or cancel rent contracts) those merchants who did not show up to work and protested. The most covered case was that of Vosku Shuka owner Vagharsh Abrahamyan who broke tables and showcases of those merchants who participated in the protests. the destructive behavior of Abrahamyan was not dealt with by the police.