The government not only refuses to provide the industries hit the hardest by the coronavirus with tax breaks, but it also forces these companies to make advance payments. Travel agencies, which had zero tourists this year, are being forced to make advance payments to the government. If they don’t, they will be fined.
In an interview with Aravot Daily, the director of development for Armenia Travel, Armen Grigoryan, said that the government needs to review its legislation. According to Grigoryan, if companies were able to make those advance payments in normal conditions, they will now face huge problems when paying the government a deposit given the current situation. The directors of travel agencies say that they are trying in despair to pay these taxes. Some are even forced to take out loans.
“Domestic tourism is seasonal. The season in Armenia begins in April and ends in October. We have a busy season then. It is rather quiet between October and April. During the high season, we get a lot of profit, so we use that money to pay salaries, rent, utilities, and taxes. But now, we don’t have any money. There are no tourists and the state is forcing us to make advance payments. We paid over 100 million in taxes last year. That is the law; if you paid 100 million in taxes last year, you need to make an advance payment of 20 percent within the first three months of the next year. This is due to the fact that it is expected that you will have the same turnover this year. If you do not make this payment, you will be fined,” Grigoryan said.
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He expressed hope that the state will understand the situation and review this legislation. “Now, we are giving the state loans based on the expectation that we will do business and receive that money as part of our business. It is expected that we will make profits and this advance payment will be paid off. However, we will not make any profits for at least the next 6 months. The advance payment will remain a deposit. But paying the state a deposit in current conditions will cause many problems for us.”
Lusine Budaghyan
