Retail trade in Armenia badly in need of substantial reforms
Retail trade in Armenia has faced grave problems and is badly in need of a comprehensive approach, Gagik Makaryan, head of the National Union of Employers of Armenia, said on Wednesday.
Traders at Malatia, one of the biggest fairs in Yerevan, are complaining about high leasing fees. They say retail trade is flagging now, while leasing of trade pavilions remains extremely expensive.
Makaryan finds it necessary to revise contracts between owners of fairs and traders amid the current decline in trading.
He proposes to lower turnover tax for traders from the present 1.5% to 0.5%. In his opinion, this will put things right.
«I have already talked to the economy minister and I can officially state that the economy ministry is willing to discuss the matter and find ways to remedy the situation,» he said adding that it is also necessary to enter into a dialogue with owners of fairs.
Contracts between owners and traders, he said, should be carefully considered to see whether owners fulfill their contractual obligations or not, whether conditions in fairs meet sanitary and hygienic norms and whether fire-preventing measures have been taken here.
Makaryan said some 25,000 citizens are involved in micro trading in Armenia now, and with taking into account also members of their families, we will have 100,000 concerned people.
People of this category demand nothing from the government and are able to earn money for living.
Besides, they pay taxes, and therefore the government ought to pay attention to their problems.
According to official statistical reports, Armenia's domestic trade turnover shrank 8% in 2015 to AMD 2 282.2 billion.
Retail trade totaled AMD 1 352 billion and made up 59.2% of the mentioned amount (10.1% decline). ($1 – AMD 490.7). --0---