ArmInfo. The state is failing to address that allow large businesses to take advantage of the preferential turnover tax system, and all this of small businesses, as stated by Arman Petrosyan, Vice President of the SME Association, during a discussion on February 25 regarding the proposed double increase in the turnover tax rate
The expert does not rule out that many business entities are currently restructuring their businesses to comply with turnover tax framework. Many countries are faced with this. However, rather than dismantling the system entirely, they are focusing on developing mechanisms to address unfriendly taxpayers.
Meanwhile, increasing the turnover tax rate will lead to higher prices for goods and services offered by micro and small businesses, as they may need to hire more expensive accountants to mange more complex accounting. This could lead to closures of many businesses, particularly in sectors like tourism. Therefore, the expert doubts that the authorities will achieve their fiscal goal of collecting an additional 18 billion drams.
