ArmInfo.The implementation of doubled turnover tax rates in Armenia will either result in a notable decrease in small and medium-sized businesses, a growth in the shadow economy within the sector, or both, according to an article written by MP Tadevos Avetisyan from the opposition faction " Armenia". The article was received by ArmInfo.
The deputy noted that starting from January 1, 2025, the turnover tax rate in the country has doubled. Specifically, the turnover tax rate for commercial activities has increased from 5% to 10%, in the manufacturing sector - from 3.5% to 7%, and in the catering sector - from 6% to 12%. Lawyers and notaries were no longer included in the sales tax system along with realtors, hairdressers, car repair shops, builders and others. "The government has set a goal of collecting an additional 18.6 billion drams in turnover tax. What is actually happening? In January 2025, compared to the previous year, total tax revenues to the state budget increased by 31.1%, with turnover tax revenues, making up only 6.6% of it, increasing by 19.4%. And this is despite the doubling of sales tax rates. Essentially, what has been previously stated is being confirmed: the implementation of doubled turnover tax rates is resulting in either a significant reduction in small and medium-sized businesses, a growth in the shadow economy, or both," the parliamentarian wrote.
