The parliamentary opposition (Heritage, Prosperous Armenia and Armenian National Congress) has suggested convoking a special parliamentary session on the turnover tax law on Feb 2 2015.
According to the leader of Heritage's parliamentary group Ruben Hakobyan, the parties is going to stand up for small and medium-sized businessmen and will try to revoke the law.
To remind, the law looked to reduce the turnover tax for economic entities engaged in the field of trade will from 3.5% to 1% starting 1 October 2014. The decision sparked public outrage and the Government was reluctant to postpone the law till February 1 2015.
The point is that the Law has a provision on compulsory document flow of the deals, which has prompted the protests. The medium and small importers, mostly, importers of clothes, think that they have no enough resources to hire accountants to compulsorily submit a document on inventory as of 1 Feb 2015 to the tax bodies.
To note, the following types of responsibility will be applied to SMEs: a warning for violation of the law; a 20,000 AMD fine for repeated violation; and a 5% turnover tax for a third case of violation. The economic entities violating the Law on Turnover Tax for the 4th time will occur in the field of VAT. Starting from 1 Jan 2016, an SME having no document flow will have to pay the tax at a higher rate - 5%. VAT tax will be charged if an economic entity fails to submit document flow for a second time.