Prime Minister Nikol Pashinyan rejected opposition claims that Armenia has a heavy tax burden for businesses, accusing these oppositionists of being former corrupt businessmen who no longer have access to such “levers” after losing the ability to evade taxes.

At the same time, he indicated plans for reforms to the microenterprise tax system.

“I fully understand the opposition’s statements about a heavy tax burden, because when they were in power, they were used to not paying taxes. Naturally, now that they are forced to operate within the tax system, it feels heavy for them. In essence, they are not businessmen; they are specialists in using corrupt systems to evade taxes, push competitors out of the market, and make money in favorable conditions—and, as it is commonly said, to loot. So it is understandable that now, when such opportunities are no longer available, it feels burdensome to them,” Pashinyan said at a press briefing when asked about claims made by some opposition figures.

Some opposition parties have argued that the country’s tax system is burdensome for businesses, notably small businesses, and have pledged to lower taxes—or even introduce tax exemptions for microbusinesses—if they win the upcoming elections.

When asked whether he sees the need for changes in the tax system in the near future, Prime Minister Nikol Pashinyan said that the government is currently considering raising the 24-million-dram turnover threshold for the microenterprise regime to encourage them. 

“I would like to remind you that it was during our governance that the microbusiness system was established, when special conditions were created for the smallest businesses, and our policy has been to encourage businesses to become more successful, not less successful,” he said.

“We see an opportunity to raise the microbusiness threshold in the near future. The current threshold is 24 million drams, and it is clear that this level—also due to inflationary developments—is no longer relevant. We are considering raising the threshold so that truly small businesses can operate under special conditions, while others cannot use small-business status to avoid taxes,” the Prime Minister explained.

He recalled that after 2018 it became evident that many large businesses were splitting themselves into smaller entities in order to avoid taxation, a practice that is now significantly restricted.

“I want to address the citizens of Armenia who work, create results, generate and pay taxes, and tell them that we are transforming the taxes they pay into beautiful and modern kindergartens and schools, equipped with up-to-date furniture and infrastructure. I also want to emphasize that taxes are an important attribute of the state and sovereignty. I call on citizens, when making any purchase, not to forget to request a fiscal receipt, because this is also how we ensure healthcare insurance and pension increases,” Pashinyan said.

The Prime Minister stressed that those whose public discourse focuses on demonizing taxes are effectively advocating for the cancellation of healthcare insurance, pension increases, school and kindergarten construction, road development, and other public projects.

“Where there are taxes, there is prosperity; where there are no taxes, there is no prosperity. The well-being of every citizen depends first and foremost not on how much they spend on their own welfare, but on how much the state spends on their welfare,” Nikol Pashinyan concluded.