Armenian State Revenue Committee denies rumors about the existence of  any agreements with economic entities to work under the old schemes

ArmInfo.The Committee of State Revenues (SRC) of Armenia refutes rumors about the existence of any agreements with economic entities.

"The RA State Revenue Committee once again calls upon all economic  entities to carry out their activities in accordance with the  Armenian legislation," the press service of the KGD stated in  response to a request by ArmInfo.

The Tax and Customs Committee recalls that on May 28, the department  met with representatives of large supermarket chains. During the  meeting, the head of the department David Ananian urged business  representatives to carry out their activities exclusively in  accordance with the letter of the law, adhering to the rules of  operation of cash registers. Networking companies engaged in trade  were warned that early agreements with the former government are no  longer valid and they need to return to the legal field in a short  time. They were given 3-5 days to settle software problems with cash  registers. "The rumors about the existence of any agreements with  large economic entities have no connection with reality," ArmInfo was  told in the SRC.

Meanwhile, the owners of several large supermarket chains in Armenia,  in an informal conversation with the ArmInfo correspondent, assured  that after appealing to the government to reconsider the previously  adopted decision to collect 20% of value added tax from agricultural  products and meat sold in supermarkets, the Cabinet agreed to a  concession. "In fact, the government realized the inexpediency of the  decision and its negative consequences, and accepted our offer to  work under the old scheme for agricultural products and meat. As  agreed, we will continue to purchase and sell agricultural products  and meat as IP, due to the decline in prices for these goods in  recent days, "- said one of the owners of network supermarkets. At  the same time he expressed satisfaction with the policy of the new  government, which listens to "sober business proposals". "Under the  previous authorities this was a problem, they were complex in  recognizing their mistakes," the entrepreneur noted.

Another owner of network supermarkets said that, according to the  agreement reached with the government, the existing scheme will work  until the problem finds a legislative settlement. "At present, we,  the owners of supermarkets, together with the government, should  develop such a bill that will legislatively confirm the current  realities on the market, that is, we will continue to work as before,  but this will be legislated," he said, while expressing satisfaction  the fact that under the current authorities the rules of the game on  the market for all are equal. When asked why the owners of the  supermarket chain do not want to work in the field of agricultural  products and meat, taking into account VAT, the entrepreneur stressed  that this will lead to an increase in the prices of these goods, not  only in supermarkets, but also in the whole market, because prices in  the retail market form supermarkets, which account for 70% of the  total trade.  "Exactly, realizing this, the former authorities took  such a step, in principle, the new government found such a decision  expedient, it's just necessary to consolidate the existing  situation," the interlocutor explained.

On May 30, the National Security Service presented the results of  inspections to Alex Holding. According to preliminary data, it was  revealed that Alex Holding, being a VAT payer, since the end of 2016,  under the pretext of not wanting to provoke a rise in prices for  local agricultural products, with the former leadership of the SRC  has come to an agreement that the products purchased from the  villagers are sold in the supermarket network "Yerevan City" through  461 individual entrepreneurs (registered in various private  individuals with a turnover of 115 million drams), which allowed  paying only 2% of turnover tax instead of 20% of VAT and profit tax.  When the turnover of the IP reached 115 million drams, the activity  was suspended, after which a new IP was registered. Taking advantage  of the opportunity provided by the ex- leadership of the SRC, Alex  Holding, in addition to local agricultural products, through these  IPs sold other products, as well as imported agricultural products,  paying only the turnover tax. According to the SNB, 11 more network  supermarkets of Armenia operate in the same way. After inspecting the  NSS and changing the "established mechanisms on the market," the  prices for meat and agricultural products in supermarkets soared.

In connection with the situation, the heads of 11 retail networks  sent a letter to the Prime Minister of Armenia, Nikol Pashinyan,  expressing concern about possible risks of price increases and job  cuts. After this treatment, prices for agricultural products and meat  in supermarkets have returned to their previous level. True, the  government did not declassify the information about why after a sharp  jump in prices again dropped, continuing to make calls to work  exclusively within the law. Meanwhile, on June 2, information on  agreements between the authorities and big business leaked into the  social networks.