Prime Minister Nikol Pashinyan discussed the increase in the turnover tax and the resulting concerns during a Q&A session in the National Assembly.

Responding to complaints that large businesses often fail to provide proper documentation, Pashinyan stressed that the government intends to identify those violating the regulations.

“We are ready to go after all who withhold documents,” he declared, according to RFE/RL.

Pashinyan said statistics indicate that 61.7% of turnover tax payers report an annual turnover of up to 10 million drams, suggesting an average daily sales figure of about 27,000 drams. He noted that while he is not an economist, calculations with his colleagues indicate that businesses of this scale should not be economically viable.

"How accurate is this? For years—one, two, three, four, five—we have asked people to pay their taxes fairly. We made a revolution for this," Pashinyan stated.

At the same time, he emphasized that if errors are found in their calculations, the government will not hesitate to acknowledge and correct them.

Under the new law, effective January 1, 2024, the turnover tax doubled to 10% for businesses failing to provide purchase documentation. However, proper documentation reduces the tax to just 1% of turnover. The law also requires inventory documentation.

Despite this, retail traders—who have staged multiple protests outside the government building—argue that the law creates significant challenges. While it appears reasonable on paper, they claim that in practice, businesses, especially in rural areas, struggle to obtain the necessary documents. Additionally, the tax increase places a heavy burden on businesses.