Armenian businessmen protest tax increases in front of government building

A group of Armenian small business owners gathered in front of the government building in Yerevan to protest against a proposed increase in taxes.

The protestors, representing a broad spectrum of small and medium-sized enterprises (SMEs), voiced their opposition to the new tax measures, which they argue will place an undue burden on their businesses, Caliber.Az reports, citing Armenian media.

The protesters collected over 2,300 signatures in opposition to the tax hike, reflecting widespread discontent among the business community.

Hakob Avagyan, president of SME Cooperation Association, expressed strong criticism of the government's stance, stating that the Cabinet of Ministers has shown little interest in engaging in dialogue with the business sector. He emphasized that decisions are being made without considering the concerns and input of entrepreneurs.

Avagyan further warned that the government's refusal to revisit the decision could have detrimental effects on the business climate in Armenia. "If the authorities continue down this path, it will only lead to negative consequences for the economy and the entrepreneurial community," he said.

To recall, as of January 1, amendments to the Tax Code took effect, which introduced significant changes to the turnover tax structure. For business entities that do not provide documentation for the purchase of goods, the tax rate was doubled from 5 per cent to 10 per cent. Conversely, for those businesses that do submit the necessary documentation, the tax rate was reduced to 1.5 per cent.

The protest highlights growing frustration among Armenia’s small business sector, which fears that the tax increase could stifle growth, limit investment, and exacerbate economic difficulties. As tensions rise, many in the business community are calling for more inclusive policymaking and better communication with government officials.

By Vafa Guliyeva