Macrobusiness must not benefit from tax priveleges - Armenian PM

Meeting in a session on Thursday, the Government adopted amendments to the draft laws on Taxes and the Value Added Tax (VAT).

The new reforms aim to restrict possibilities of tax evasion, clarifying the tax relations and the mechanism of levying VAT on custom-free products.

Highlighting the importance of the new amendments, PM Tigran Sargsyan said: "There have been heated discussions over the issue at the Supreme Council on Introduction of New Culture of Income Administration, and several problems were revealed. The top problem now is that macro-businesses attempt to benefit from the privileges granted to small and medium enterprises. Very often they open temporary enterprises to import products at zero interest rate and register them with the companies benefiting from VAT priveleges."

The proposed amendments, according to the Prime Minister, aim to protect Small and Medium Enterprises (SMEs) and prevent macro-enterprises from splitting up and benefiting from tax privileges.

"This is why the draft should be introduced to the public from the outset to explain the problems we resolve," Tigran Sargsyan stressed.