‘No taxes, no state’ – Pashinyan addresses SME representatives

Prime Minister Nikol Pashinyan took part in a discussion on the future of small and medium-sized enterprises (SMEs), organized by the SME Cooperation Association NGO with the support of the Democracy Development Fund, the Prime Minister’s Office said in a readout.

The meeting was attended by Minister of Economy Gevorg Papoyan, representatives of the association’s regional offices, and SME representatives.

Pashinyan congratulated participants on Taxpayer’s Day, highlighting its importance for state-business relations. He stressed that the existence of a functioning state is directly linked to tax collection, noting that taxes enable the resolution of public issues and the implementation of development programs.

The Prime Minister said tax policy should encourage higher productivity and increased tax payments, as this reflects economic development.

“There is tax, there is a state; there is no tax, there is no state. When there is tax, issues are resolved or are being resolved; when there is no tax, no issues are resolved,” the PM said.

Speaking about the development of SMEs, Pashinyan emphasized that sustainable economic relations cannot be achieved without a change in attitudes toward taxation. He highlighted the importance of properly presenting the tax system, noting that recent amendments have created broader opportunities, including reduced tax rates of 1% and 1.5% depending on the sector.

Pashinyan also underlined the need to establish an institutional system, suggesting that SMEs should have an advocacy organization. He said the Government is ready to co-finance such a body together with businesses.

According to the Prime Minister, this would help coordinate efforts and create a non-state institution working closely with the Government to collect and present sector-related issues.

Participants also discussed issues related to SME development, the continuous improvement of tax administration, available support tools, existing challenges in the sector, and possible solutions.