ArmInfo.In 2019, the Ministry of Finance of Armenia proposes to review and "enrich" the list of excisable goods. Armenian Deputy Minister of Finance Arman Poghosyan told reporters on December 4 at a press conference.
According to the Deputy Minister, the tax policy of the Armenian government is aimed not only at simplifying tax administration, ensuring economic activity, encouraging investment, but also at supporting fiscal stability in the country. In addition, when considering international trends in tax policy, it becomes obvious that the world is moving towards reducing the tax burden on direct taxes (income tax, personal incomes), while simultaneously increasing the rates of indirect taxes or consumption taxes (VAT, excise tax).
Within the framework of this logic, in order to compensate tax losses of the budget as a result of lowering the income tax and turnover tax, and their total negative effect on the budget is estimated at 39 billion drams, the Ministry of Finance proposes to increase the rates of excise tax on tobacco products and alcohol, as well as beer. Electronic cigarettes (according to IGOS technology) will be taxed in the same way as traditional ones. As Arman Poghosyan recalled, tobacco excise rates outstripped in 2017. As part of the new initiative, the Ministry of Finance is proposing to raise rates ahead of schedule. The initiative will provide additional revenues of 6-7 billion drams to the state treasury. At the same time, the Ministry of Finance understands that it is not worthwhile to "get involved", since by "overdoing" with the increase, it is possible to reduce consumption or involuntarily stimulate the demand for these products in neighboring Georgia.
It is also planned to increase the minimum price for vodka and ethyl alcohol - from the current 2500 drams per 1 liter of 100% alcohol to 6 thousand drams. From July 1, 2019, the project proposes to expand the list of excisable goods, including drinks with a sugar content of 5g or more per 100 g of product at a rate of 10% of the cost, but not less than 30 drams per liter. Due to this, tax revenues of the state treasury will increase by 3 billion drams. Already from January 1, 2020, the Cabinet intends to revise the environmental tax rate for emissions of pollutants into the atmosphere by cars with an engine power of 301 horsepower and more - instead of the current 50 drams for 1l.s to set 150 drams. The Cabinet of Ministers of Armenia also intends to increase consular fees, state duty rates for the provision / replacement of state numbers, as well as on granting a license to financial institutions.