ARF warns of possible wave of popular anger after instruction of amended law

YEREVAN, October 24. / ARKA /. Artsvik Minasyan, an Armenian MP from the opposition Armenian Revolutionary Federation (ARF) party, warned today of a new wave of popular anger against the government, which he said would be inevitable after his country fellows realize that the amended law on income tax that comes into force form January 1, 2013, has cut their wages.

Under the current law, the bigger part of monthly social security payments are made by employers. After the amended law enters into force, the entire amount of social payments would be deducted from employees' wages. Employers, in turn, would be required to increase the salaries of their staff so that their actual income does not reduce. Minasyan said he is sure the new law would result in lower wages.

"You (the government) will be cursed and another major exodus of Armenians would follow. Think for a moment, listen to the opposition! ", he said to the representatives of the executive authority in a speech in parliament.

Deputy parliament speaker Edward Sharmazanov called on the opposition MP "not to moralize the issue and avoid giving advices."

Fears that the amended law would entail lower wages were downplayed earlier by labor and social security minister Artem Asatryan.

"Now if an employer pays a worker 100,000 dram salary, he/she has to pay also 19,000 drams as social payments. Besides, another 3000 drams are deducted from a worker’s salary as social payments in addition to 6,450 dram income tax. All in all, 9,450 drams are deducted as taxes and the net income is 90,550 drams", he explained.

From January 1 all these components are combined into a single income tax and are deducted from the worker’s salary, but the employer will have to raise worker’s salary by 19,775 drams, he explained.

"Actually, the size of salary will not change; in fact it may be raised by 775 drams. But I think it's a small amount, given parallel measures designed to simplify procedures for employers’ reporting ", he said.

"In addition, if earlier employers spent time and resources to submit different reports to various agencies, beginning next year they will submit one single report in electronic form. -0-