Street Vendors Must Be Approached and Informed to Use Cash Registers, Says Pashinyan

We have street vendors in various locations where there is absolutely no cash register. My instruction has been that in all cases where our legislation suggests that there should be a cash register, they should simply approach those people and inform them that, dear citizen, you must install a cash register.

This was stated by Prime Minister Nikol Pashinyan, who visited the State Revenue Committee on January 19 to discuss its activity report for 2023. SRC Chairman Rustam Badalyan and his deputies reported on the measures implemented during the reporting period.

Specifically, they reported on the goals and expected results of the government’s 2021-2026 activity program and the strategic plan for the improvement of SRC operations and administration. A report on the revenue agency's activities for 2023 was first presented.

In 2023, the State Revenue Committee ensured 2 trillion 221.9 billion drams in tax revenues, exceeding last year's figures by 296 billion drams or 15.4%. It was emphasized that the state budget revenues have almost doubled compared to 2017.

According to officials, 2023 has been characterized as an effective year in the fight against the shadow economy. The target set by the government program stipulating that the tax/GDP ratio should improve by 0.5 percentage points has been achieved at least to that extent according to the current forecast.

Growth has been recorded in all tax categories, except for the royalty fee, which is primarily due to international metal prices. It was reported that approximately 362.9 billion drams were returned to taxpayers and individuals, exceeding last year's figure by 100.1 billion drams or about 38.1%.

The return in value-added tax amounted to 288.4 billion drams, exceeding the 2022 figure by 75.4 billion drams or 35.4%. Notably, the bulk of the refunded income tax comes from return on mortgage: in 2023, 52 billion drams of income tax was returned to 38,911 beneficiaries through the electronic platform, exceeding the 2022 figure by 42%, while the number of beneficiaries increased by 33%.

Based on accounting documents (including cash register receipts), 648.7 million transactions were conducted worth 12.2 trillion drams, surpassing last year's figures by 45 million transactions and 2.1 trillion drams.

A record increase in job positions and average wages was registered: the number of income-earning job positions in November reached about 738,000, exceeding last year's figure by 5.2%, with the average salary being 293,000 drams, reflecting an increase of 10.6%.

During the reporting year, the tax authority's implementation of 1,186 comprehensive tax audits resulted in the recovery of 38.4 billion drams, while approximately 52.2 billion drams in additional liabilities were proposed based on the results of audits and studies, including thematic studies amounting to 9.4 billion drams. According to 82,752 analyses conducted, an additional 45.6 billion drams in taxes was calculated.

Addressing the compliance of business operators with tax obligations, the Prime Minister noted: “We have street vendors in various locations where there is absolutely no cash register. My instruction has been that in all cases where our legislation suggests that there should be a cash register, they should simply approach those people and inform them that, dear citizen, you must install a cash register. At that moment, no action should be taken; just continuously convey that message, but at some point, action must also be taken. This is very important.

The issue is not, as you might understand, dear colleagues, hypothetically speaking, these people might pay 2,000 drams in tax a year, but I want to remind you of our discussions on property tax. Previously, some properties were completely exempt from taxes. I said, why are they exempt from tax? They say, let’s calculate: it will be 50 drams in tax for the year. If it’s going to be 50 drams, let it be 50 drams, because that is also a matter of culture; it’s a question of the relationship between the state and its citizens. Especially with the logic that the state, through that tax, primarily cares for the diverse needs of citizens.”