ARMEN ALAVERDIAN: WORRIES OF ECONOMIC ENTITIES ARE MAINLY CAUSED BY THEIR INGNORANCE OF LEGISLATIVE AMENDMENTS

Noyan Tapan

Jan 22, 2009

YEREVAN, JANUARY 22, NOYAN TAPAN. The deputy chairman of the RA
State Revenue Committee Armen Alaverdian on January 22 met with
representatives of some trade organization points, particularly,
such fairs as "Vagharsh & Sons", "Gnuni Market", "Narek" in order to
give explanations to economic entities about problems related to the
introduction of cash registers at trade organization points.

During the meeting, those conducting trade in the gold market expressed
their concern that in case of exceeding the VAT threshold of 58
million 350 thousand drams, they may have difficulties because of
"being moved to some other field of taxation". They said that the
indicated threshold is quite hard for those engaged in gold trade
which may prevent them from benefiting from the advantages that
business has received as a result of the recent reforms.

The next issue raised by economic entities was related to the
difficulties in obtaining documents that substantiate their expenses,
in particular, the purchase of gold from individuals. They also have to
incur extra expenses within the fairs in order to pay for accounting
and other services. The representatives of trade organization points
expressed their willingness to pay a higher fixed payment if the
state does not oblige them to use cash registers.

However, A. Alaverdian told them that the introduction of cash
registers is an irreversible process, and those engaged in trade must
meet the requirements of the law. He said that the burden of taxation
on small business was reduced and the accounting was simplified as a
result of the recent legislative reforms. In his words, the worries of
economic entities are mainly caused by their ignorance of legislative
amendments.

A. Alaverdian assured the representatives of fairs that their tax
burden will not increase with the introduction of cash registers: via
a network connection of cash registers, the tax bodies will follow
entities with a considerable turnover (the so-called risky ones),
while small businessmen have no reason for concern.