Entrepreneurs expect fundamental revision of the draft tax code otherwise forecasting a huge wave of protest. The entrepreneurs warned the government months ago.
They warned that in the stage of development of the draft code the ministry of finance listened to and accepted the recommendations of the organizations representing entrepreneurs, there were long discussions, and the entrepreneurs believed their recommendations would be accepted but eventually the government submitted to the parliament a draft that was totally unacceptable for entrepreneurs. And the parliament adopted the new code on first reading on June 15.
Following this, the organizations representing the interests of entrepreneurs were promised by members of parliament and government to launch a series of discussions, listen and take into consideration their suggestions to amend the draft code until the second reading. However, there have been only three discussions so far, the entrepreneurs are in uncertainty, there is not an improved draft.
The new prime minister Karen Karapetyan has recently announced in parliament that he is acquainted with the issues relating to the Tax Code but it is a complicated issue, and at the moment he does not have a solution.
Paylak Tadevosyan, the head of Protection of Taxpayers NGO, told Lragir.am that there is not an improved draft code. “I haven’t seen an amended draft since the first reading, and there is not one to see,” he said.
Tadevosyan reminds about the meetings of the Standing Committee of Economic Affairs after the adoption of the draft code on first reading.
“They promised that the discussions will continue and there cannot be a discussion without the participation of those who present proposals. However, the deadlines have expired, when else are they going to discuss anything? Our organization alone has sent three notes relating to chapters of the code, we have come up with about 250 proposals. We have worked that much but we don’t know how to describe this attitude by the National Assembly. Now everyone is shedding responsibility but nobody wants to assume responsibility and continue the discussions. It is impossible to call something a reform and repetitively do bad things,” he said.
Specialists say it is unacceptable to adopt this draft of the code because it harms enterprises, boosts the social burden, citizens will be affected. “The issue of increasing the income tax is being discussed, and it means that the income will be less,” Paylak Tadevosyan said.
According to experts, this draft code allows the tax service to make individual decisions. For example, a tax inspector is authorized to go to a company without having to follow a procedure and take away their computer, which is a risk for an enterprise.
Businessmen are especially concerned about the following points of the Draft Tax Code: actual increase of the income tax, change of the minimum taxable revenue for the tax on revenue (40 million drams against the current 115 million drams), tax on dividends, the prolonged term of amortization, the lack of predictable taxation.