Let Political Parties Help But Not Direct Protest: Entrepreneurs About Protest Movement

Certain small and medium sized entrepreneurs have simultaneously closed their businesses in protest to the Law on Turnover Tax. Today, during a press conference, Armenian Association of Small Businessmen NGO president Stepan Aslanyan (pictured on the right) said that since the beginning of February around 700 businesses have closed. Aslanyan observed that a few underground shopes at the “Barekamutyun" subway station have closed, while business has always been good there. 

Armenian Vendors NGO president Gagik Danielyan added that those numbers are not final because businesses are closing every day. “Go to the markets on Firdusi Street, in Malatya, you’ll see many booths closed,” said Danielyan.

The two guest speakers claimed that law’s new version would have serious damage to small and medium sized businesses.

According to Aslanyan, in addition to delaying the Law on Turnover Tax, the government needs to begin discussions with the entrepreneurs. That process still has not begun, but the organizations dealing with the issues of entrepreneurs propose that a Government delegation walk around trade centers to conduct discussions, which would allow entrepreneurs to continue their daily work.

Gagik Danielyan said that they do not wish to be included in any political activities. “We want to be able to earn our daily bread for our families. We are telling the political parties that if they can help, so be it, but don’t direct us,” said Danielyan.

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.