Armenia will continue to subsidize the difference in the tariff for diesel fuel for the agricultural sector of the republic

ArmInfo.  The Armenian government  is preparing a program to subsidize the rise in price of the tariff  for diesel fuel for the agricultural sector of the republic. The  Minister of Agriculture of Armenia Ignaty Arakelyan stated this on  January 25 after the meeting of the government.

According to him, initially the Cabinet of the country did not plan  to subsidize the increase in the tariff for diesel fuel. However,  following the commission of the President of Armenia to find ways to  mitigate the negative impact of rising prices on a number of socially  important goods, the Ministry of Agriculture conducted an analysis of  the situation on the market. Based on the results of this work, it  was decided to develop a program for subsidizing diesel fuel for  farmers. "The mechanisms and the size of the subsidy are being  specified, we will inform about it additionally," Ignaty Arakelyan  stated.

At the same time, as the head of the Ministry of Agriculture pointed  out, everything will be done to keep the cost of diesel fuel at the  same level of 380 drams, instead of 440 drams, established from  January 1. "At this stage, we expect stabilization of prices in the  diesel fuel market. determine the resources of the government, in  order to properly organize the process of subsidizing," concluded the  Minister.

According to the SCPEC monitoring data, as a result of tax changes  since January 1, 2018, the price of 1 liter of gasoline increased by  20 drams, 1 liter of diesel fuel - by 60 drams, and 1 cubic meter of  compressed gas by 20 drams. Nevertheless, earlier, at the  parliamentary hearings on the rise in prices, the deputy head of the  State Revenue Committee of Armenia Vakhtang Mirumyan authoritatively  stated that raising the excise tax rate on fuel can not have a chain  effect and lead to an increase in prices for certain types of goods.  According to the excise duty on diesel fuel Vakhtang Mirumyan noted a  decrease in the base rate from 35 thousand to 13 thousand drams (per  1 ton). At the same time, as he noted, the taxation of this type of  fuel is included in the field of VAT regulation. And if by 2018 the  price of diesel fuel was set at 380 drams, as a result of the changes  it reached 440 drams. At the same time, thanks to the changes, today  the carrier can claim a VAT refund of 74 drams. "In fact, the cost of  diesel fuel is 366 drams, that is, 14 drams less than it was before  the entry into force of the Tax Code," he explained. Nevertheless,  Mirumyan admitted that in the absolute loss is the sphere of  agriculture, since it is exempt from VAT and can not hope for such a  "bonus" of tax regulation.