YEREVAN. – The Government of Armenia on Thursday approved the draft legislative amendment on reducing the turnover tax from 3.5 percent all the way to 1 percent, Haykakan Zhamanak daily reported.

“This can be considered a significant event. This will result in easing the tax burden of the small and medium-sized enterprises, and there are hopes that there will be some success in this domain.

“The analysts, however, are convinced that this will result in a substantial inflation [in Armenia]. ‘Small and Medium-sized Enterprises Cooperation Association’ NGO Chairman Hakob Avagyan expressed such a view in a talk with our reporter.

“As per Avagyan, how much the [price of] goods will increase [in the country] depends on the ‘appetite’ of the large businesses,” Haykakan Zhamanak wrote.