Value added tax should be employed to a larger extent in Armenia.

Ms Teresa Daban Sanchez, the IMF resident representative in Armenia, told the aforementioned today at the conference "Enabling Environment for Sustainable Enterprises in Armenia", which was organized by the International Labor Organization (ILO) and the Republican Union of Employers of Armenia (RUEA).

According to her, the divide between the regimes of turnover tax (taxed on gross income tax) and VAT should be drawn down from the current 114 mln Armenian drams (around $230 thousand – News.am) to 40 mln AMD of yearly turnover.

This will ensure that payers of a turnover tax, which is easier in accounting, would be paid by businesses which are really small and cannot afford accounting services and/or don’t have these skills themselves, Ms Sanchez said.

VAT should also be expanded to areas currently exempt from it – education, healthcare, and agriculture. Increased receipts will help to refund exemptions for the most vulnerable, she concluded.