YEREVAN. – Small business clashes with the large entities as a result of tax policy of the Armenian authorities, economist Vazgen Safaryan told reporters.

He noted that the requirement of small and medium traders to submit invoices for all transactions means that SMEs have to, in turn, demand them from their major suppliers. But it is difficult to demand something from someone on whom you depend, Safaryan added.

It is no secret that many SMEs are paying only after the products are sold.

“Naturally, in these conditions, they do not want to spoil relations and demand an invoice, knowing that large business entities do not like to give them,” the economist added.

The new law on turnover tax has caused a considerable protest among the country’s small and medium-sized merchants. The law, which has come into force in Armenia on October 1, 2014, the tax rate for businesses in the country has dropped from 3.5 percent to one percent, but the businesses will have to submit documents on their commodity circulation. The merchants say large suppliers often refuse to submit the documents.