VIDEO: We are forced to sell cars at a higher price; car importers dissatisfied with tax rates

Companies engaged in car import and sales held a protest in front of the government’s main building. They are expressing their discontent with a recent decision that mandates the payment of profit tax.

“We are being forced to have a 20 percent profit. According to the law, even if we do not have that profit, we are still required to pay profit tax based on that 20 percent. This means that if a car costs me $10,000, no matter how much I sell it for, I must already pay at least $2,000 at 18 percent as profit tax,” said Rafik Ghazaryan, the director of a company engaged in car import and sales during a conversation with reporters.

Car importers note that they are compelled to sell cars at a higher price since they are required to pay additional taxes.

It is important to mention that starting from December 1, a new package of amendments and additions to the Tax Code will come into force in Armenia, which introduces profit tax for companies dealing with car imports. These amendments were approved by the parliament on November 16.

For further details, see the video.