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Back in 2019, by the decision of the NA Standing Committee on Economic Affairs, a Working Group on Cooperation between the National Assembly and the Small and Medium Entrepreneurship (SME) was established, the purpose of which was to strengthen the dialogue between the deputies and the SMEs.

The platform created adjunct to the Committee serves to comprehensively discuss and emphasize problems of the sphere, as well as to implement necessary legislative revisions.

On December 13, the Group moderated by the Deputy Chair of the Committee Babken Tunyan convened the regular, 11^th sitting.

The members of the Working Group raised a number of issues, which related, particularly, to the regulations of the law On Regulatory Legal Acts and the Tax Code.

It has been proposed to establish a mandatory requirement that the drafts referring to more than 10,000 SMEs be subject to a regulatory impact assessment. It will give an opportunity to understand how the legislative amendment will have an effect on economy and business.

The next proposal related to the membership fees paid to Chambers of Commerce and Industry, unions, and associations. It is proposed to create an opportunity to observe them as tax expenditure. A viewpoint sounded that there are some restrictions on the membership fees, which are sometimes identified with donation, meanwhile the membership fee is not a donation.

According to the new regulations adopted in the Tax Code, a number of spheres have been moved from the turnover tax system to the value-added tax (VAT) system, and other criteria have been established for a number of spheres rendering professional services (lawyers, accountants, advocates, etc.). The SME representatives also see risks in this issue and suggest extending the deadline for passing the law for some spheres until the end of 2025. They also propose to initiate amendments to existing regulations, within the scope of the possibilities.

A proposal has been made to recognize social entrepreneurship with a legal label.

The Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan documented that the issues of the SME sector are always in the center of the Committee’s attention and constructive debates will also be organized in the near future to find appropriate solutions to the issues raised. And an agreement has been reached to submit the proposals made before that to the responsible structures.