ACCORDING TO EXECUTIVE DIRECTOR OF "STAR", LEGISLATION IMPEDES WORK OF SUPERMARKETS

Noyan Tapan

Au g 12, 2008

YEREVAN, AUGUST 12, NOYAN TAPAN. The tax legislation of Armenia
does not respond to the challenges faced by retail trade in recent
years – to the introduction of information technologies and the
best IT equipment, as a result of which the work of self-service
supermarkets becomes either extremely difficult or impossible. Vahan
Kerobian, executive director of Star company owning "Star" network
of supermarkets, stated this at the August 12 press conference. In
his words, his statement was prompted by the fact that in accordance
with the Law on Suspension of Operation of Cash Register Users, the
work of several shops in Yerevan was suspended for 5 days recently
by the State Tax Service (STS).

Welcoming the government program on most transparent and open
reforms in the economy, "Star" at the same time urges to cooperate
with businessmen with the aim of improving the legislative
field. V. Kerobian said that the government and the STS view tax
reforms only from the punitive point of view which rules out the
tendency to cooperate with business circles and perceive their needs
and proposals.

In particular, it was proposed legalizing the technological
solutions used at "Star" supermarkets. According to V. Kerobian,
it will faciliate administration by STS. He expressed confidence
that the solutions proposed by the RA ministry of trade and economic
development concerning the use of cash registers cannot be applied
in Armenia. 100 types of cash registers envisaged for small shops are
allowed for use in Armenia. "We propose also legalizing cash registers
intended for use in supermarkets," V. Kerobian said, adding that this
proposal has received no response.

Besides, it was proposed to give some time to ensure "Armenization"
of checks of the cash registers used in supermarkets so that the
requirements of the RA Law on Language will be fulfilled. There was
no response to this proposal either.

By forecasts of V. Kerobian, the share of supermarkets in retail
trade will continue to grow and their operation will extend beyond
Yerevan. According to him, 5-7% of food retail trade in Armenia
is conducted at supermarkets, while half of supermarket trade is
conducted at "Star" supermarkets. "Star" supermarket network employs
1,400 people. The average daily amount of sales per an employee of
the network makes 55-60 thousand drams (3-200) exceeding several fold
the same index of shops and fairs.