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The Ministry of Finance of Armenia is considering the possibility of increasing the turnover tax for small and medium-sized businesses. Minister of Finance Tigran Khachatryan stated about this at Tuesday’s parliamentary standing committees’ joint debates on Armenia's draft state budget for 2022.

The minister mentioned that small businesses currently pay 5% turnover tax, with the possibility of lowering it by 1.5%.

“As for big businesses, which operate with VAT and profit tax, taxes de facto comprise 10% for turnover. Thus, two businesses operating in the same sector face inequality. Small businesses already have a privilege since the turnover tax is calculated through a simplified procedure and pay fewer taxes,” Khachatryan clarified.

According to the minister, if the Ministry of Finance finds out that the simplified tax creates unsubstantiated competitive advantages for small businesses, the rate or threshold may be revisited.

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