Chairman of the State Revenue Committee (SRC) Eduard Hakobyan responded to the Mer Dzevov movement’s promise to eliminate taxes for small and medium-sized enterprises (SMEs) if it comes to power, stating that a 0% tax rate would significantly expand the shadow economy.

“When we talk about a zero tax rate, it implies concealed turnover, low transparency, fragmentation of large businesses into smaller ones to exploit the system. Therefore, such an approach is unacceptable to us and could lead to a significant rise in shadow activity,” Hakobyan told reporters, as reported by Sputnik Armenia.

He noted that the current government’s policy is focused on supporting SMEs through light tax burdens, simplified administration, and streamlined reporting procedures.

“I would remind you that micro-enterprises with up to 24 million drams in turnover are exempt from taxes. As for the turnover tax, while rates have increased, the deduction system has significantly reduced the effective tax burden,” Hakobyan explained.

He emphasized that zero taxation is a flawed idea in any scenario, as all citizens should contribute to the development of the state.

“From a conceptual standpoint, it’s essential that every person contributes something, however small, to nation-building. Even minimal contributions increase accountability and foster a sense of ownership among citizens. My message to political figures is to examine the underlying logic of any public proposal before turning it into a campaign promise, so we can have constructive debates,” he said.

Discussing anti-shadow economy efforts, Hakobyan noted that in 2025, authorities uncovered 363 billion drams in hidden turnover, which is 44% more than in 2024. As a result, 124 billion drams in concealed taxes were recovered, a 29% increase, along with 37 billion drams restored to the budget, up 4% from the previous year.

He also reported that the number of field operations by tax inspectors dropped by 22%, suggesting improved targeting and efficiency.