VIDEO: "Taxes Are Proposed to Increase Sixfold" - Nairi Sargsyan

“With this amendment, it is proposed to increase taxes sixfold, replacing the current 5% tax with a 31% tax,” stated Nairi Sargsyan, former assistant to Prime Minister Nikol Pashinyan, during parliamentary hearings conducted by the Economic Affairs Committee in the National Assembly.

“From this podium, the Prime Minister said that the tax code we have is unstate-like, and my argument is that our tax code does not encourage development, more so making money. I completely agree with this notion. However, the method chosen to make this unstate-like code state-like is wrong, which not only does not solve the problem but further deepens it. Businesses are established in Armenia, and as they develop year by year, when they reach a turnover level of about 115 million drams, they stop, cease making investments, or split their businesses, doing everything to avoid exceeding the 115 million dram threshold. This is akin to a manual brake in a car that prevents the business from growing beyond a certain point. To remove this 'brake,' there are two options: first, to eliminate the turnover tax, or second, to raise the turnover tax threshold or abolish it. The Ministry of Finance has decided to go with the first option, which has caused this 'manual brake' at the 115 million level to move lower, meaning that the business must operate in a 'braked' state from day one and pay a 31% tax on every 100 drams earned,” Sargsyan elaborated.