The government will also allow wine-makers to act as a turnover taxpayer or a family entrepreneur, while also considering an excise taxpayer.

The relevant draft is posted on the unified website of legal acts drafting.

The reason is that the RA Tax Code stipulates that excise taxpayers can act only in the overall taxation system.

In the case of this regulation, small businesses producing sub-excise goods have significant problems arising from the overall tax administration system and often prefer to operate in the shade.

The problem is especially topical for small and medium-sized wine producers who have a stable production and consumption market and prefer to operate outside the tax field.

According to information provided in February, 2018 by the RA Ministry of Territorial Administration and Development, companies operating in Vayots Dzor province produce about 920,000 liters of wine a year. At the same time, about 450-500,000 liters of wine is produced and sold by the home-growers in the same region. According to the survey carried out by the German International Cooperation Agency, the Gegharkunik Chamber of Commerce and SME DNC of Armenia in Areni, Aghavnadzor and Rind communities in 2013, about 885,000 liters of wine was produced, of which only 80,000 liters were used for their own needs. The rest of the produced wine, as well as about 242,000 liters of wine obtained from the plants, were sold in polyethylene bottles. To compare, about 2.6 million liters of wine was produced in factory conditions.

In domestic conditions, wine production is about 50% of the wine produced in plants in the region.

In order to solve these problems, for small companies engaged in wine making, in the legal field and to create opportunities for growth, it was necessary to provide them with the opportunity to act as a turnover taxpayer or a subject of family entrepreneurship.

The material is copyrighted and protected by law