Hitting consumers’ pockets
After casting votes on nearly 20 legislative initiatives, the parliament today continued to discuss the changes in the law on "Excise Tax". According to the draft law, cigarettes, benzene and certain alcoholic drinks shouldn't be taxed in accordance with the fixed amount, but in the taxing sphere.
The draft law also envisages the increase of cigarette prices. The draft law was introduced today by Deputy Minister of Finance Suren Karayan.
ARF MP Karen Vardanyan looked at the issue as a professional.
"The budget will decrease. It's hitting consumers' pockets. If cigarette prices go up, they won't be able to buy them anymore," said Karen Vardanyan. He demanded that the Deputy Minister of Finance present specific figures to describe how the change in the law would hurt cigarette production and agriculture, how many workplaces would be lost, how many people would emigrate from the country and how much would budget entries increase. The lack of responses frustrated the deputies.
ARF MP Vahan Hovhannisyan said that though he wasn't an economist, he was still surprised. "If you don't understand why prices go up by 20-30 drams when the tax load increases, why are you even presenting this draft law?"
The Deputy Minister of Finance didn't respond to this, but told "A1+" the following: "I still don't understand because the final price depends on the supply and demand in the market." The Deputy Minister also told "A1+" that after this change is approved, the price for a pack of cigarettes will increase by 10 drams for importers and 15 drams for local producers.
Before starting today's session, the NA congratulated Republican MP Hamlet Harutyunyan on his birthday and took note of the fact that today was Teachers' Day.
The National Assembly fixed Teachers' Day as a state holiday on the calendar.
