A Large Wave of Discontent is Soon to Rise in the Agricultural Sector

The newspaper "Joghovourd" reports that a large wave of discontent is soon to rise in the agricultural sector. According to the publication, the Ministry of Economy of Armenia is proposing to set a 10% value-added tax rate for the sale of meat, potatoes, strawberries, watermelons, melons, and wheat within the territory of the Republic of Armenia. It is noted that meat and by-products originating from slaughterhouses are also considered agricultural products.

Moreover, 3% of cash payments made for the purchase of meat products and processed fruits produced in Armenia will be deducted in accordance with the procedure established by the government. The government is attempting to reduce the shadow economy in this manner and increase the tax base by about 30%, or 86 billion drams, as well as to collect an additional 6 billion drams in VAT from the limited resources of farmers.

Whether this will succeed remains to be seen, but it is clear that farmers will not accept this proposal unambiguously. According to the Ministry of Economy, small and medium-sized enterprises in the agricultural sector in Armenia are evidently hiding the real volumes of business turnover to remain competitive in the market. Therefore, hardworking farmers will suffer due to the actions of a few large agricultural producers.

For more details, refer to today's issue of the newspaper.