Armenian parliament turns down proposed changes to tax code
16.02.2018,
17:23
Armenia’s parliament turned down today a motion of the opposition bloc Yelk calling for amending the recently adopted Tax Code, which government’s critics said triggered a price hike.
YEREVAN, February 16. /ARKA/. Armenia’s parliament turned down today a motion of the opposition bloc Yelk calling for amending the recently adopted Tax Code, which government’s critics said triggered a price hike. The motion was upheld by 35 deputies, while another 38 voted against it.
The opposition demanded that increased excise taxes on compressed natural gas and petrol be cancelled and payroll taxes be reduced.
On January 1, 2018 the excise tax on compressed natural gas used as fuel by almost 70 percent of vehicles in Armenia was increased from 8,330 drams (about $17) to 25,000 drams (about $ 50) per one thousand cubic meters. The excise tax on diesel fuel was reduced from 32,500 drams ($66) to 13,000 drams (about $ 26) per one ton, but instead VAT was introduced.
Yelk faction leader Nikol Pashinyan, as a justification for the changes in the Tax Code, noted that the Armenian market immediately responds to the price increase, but does not react to their decline, or does it symbolically, which led to the ‘horrifying’ rise in prices for consumer goods.
Parliament deputy speaker Eduard Sharmazanov countered by saying that artificial reduction of prices may have a negative effect.
"I think that even respected opposition economists can say that reducing prices at any cost is wrong. This problem can be resolved by ensuring higher economic growth," he said.
According to the National Statistical Service of Armenia, in January 2018 consumer prices increased by 2.7% as opposed to January 2017. Prices for food products (including alcoholic beverages and tobacco products) increased by 4%, and prices for non-food products and services rose by 3.5% and 0.6%, respectively. ($ 1 - 480.94 drams). –0-
The opposition demanded that increased excise taxes on compressed natural gas and petrol be cancelled and payroll taxes be reduced.
On January 1, 2018 the excise tax on compressed natural gas used as fuel by almost 70 percent of vehicles in Armenia was increased from 8,330 drams (about $17) to 25,000 drams (about $ 50) per one thousand cubic meters. The excise tax on diesel fuel was reduced from 32,500 drams ($66) to 13,000 drams (about $ 26) per one ton, but instead VAT was introduced.
Yelk faction leader Nikol Pashinyan, as a justification for the changes in the Tax Code, noted that the Armenian market immediately responds to the price increase, but does not react to their decline, or does it symbolically, which led to the ‘horrifying’ rise in prices for consumer goods.
Parliament deputy speaker Eduard Sharmazanov countered by saying that artificial reduction of prices may have a negative effect.
"I think that even respected opposition economists can say that reducing prices at any cost is wrong. This problem can be resolved by ensuring higher economic growth," he said.
According to the National Statistical Service of Armenia, in January 2018 consumer prices increased by 2.7% as opposed to January 2017. Prices for food products (including alcoholic beverages and tobacco products) increased by 4%, and prices for non-food products and services rose by 3.5% and 0.6%, respectively. ($ 1 - 480.94 drams). –0-
