SME Development Council discuss the new changes to turnover tax regime

The SME Development Sub-Council meeting, chaired by Deputy Minister of Economy Sevak Mikayelyan, convened to discuss the draft law on changes in the Tax Code in reference to activities under the sales tax regime. The draft was posted on the E-draft platform. Specifically, it recommends excluding the following types of activities from the turnover tax and micro-entrepreneurial systems:

• Construction: "41. Construction of buildings," "42. Civil construction," "43. Specialized Construction Industry"
• Real Estate: "68.3 Activities with real estate for remuneration or on a contract basis"
• Technical, Scientific, and Technical Activities: "69. Legal and accounting functions," "70. Operation of the main offices. Administrative consulting services," "71. Architectural and engineering activities. Technical experiments and analyses," "72. Scientific researches and developments," "73. Advertising activity and monitoring of the market situation," "74. Other professional, scientific and technical activities," "75. Veterinary activity"
• Healthcare and Population Social Services: "86. Health," "87. Social service of the population with holiday support," and "88. Social service without residence insurance"

Additionally, the draft proposes limiting micro-enterprises to inter-provincial, intra-provincial route operation or passenger transportation by buses. 

Council members raised a number of issues and concerns, emphasizing the lack of impact assessment and statistical data in the circulated document. It was decided to discuss the issue at the SME Development Council meeting headed by Deputy Prime Minister Tigran Khachatryan.