Hundreds of merchants took to the street in Yerevan to voice their opposition to a new “turnover tax” they claim will kill off small and medium sized businesses.

The tax, which takes effect on October 1, sets new tax rates for various types of income for commercial enterprises and private entrepreneurs with sales turnover of less than 58.35 million AMD per year.

Protestors gathered outside the Government Building and demanded to see the prime minister.

A few spokesmen for the protesters were allowed inside and relayed their grievances to the prime minister.

 

Upon exiting the building, they told the crowd that the government suggested that each individual opposed to the new law should write a complaint and hand in it.

Upon hearing this, the angry crowds proceeded to nearby Tigran Metz Street and closed the major downtown thoroughfare.

In essence, as far as one can make out, it’s your basic sales tax that will replace VAT and income tax.

For example all trades (buying and selling) will be taxed at 3.5%; rental income will be taxed at 10%.