Mikael Melkumyan: Fuel price hike to result is price growth for all goods in Armenia

ArmInfo. "If the authorities raise excises on goods, then let them reduce taxes on wages. Because of gas price rise, transport becomes more expensive, as a result, everything will get more expensive," Vice Speaker of the National Assembly of Armenia from Tsarukyan bloc told Mikael Melkumyan.

He said that starting from January 2018, the RA budget will raise 10 billion AMD more in connection with the increase of excise duty on liquefied gas, but as a result, prices for all types of transport will rise, and due to transportation costs all the goods will rise in price. From excises to gasoline, the government will collect an additional 3 billion AMD, and another 5 billion will be able to win on cigarettes. According to the deputy, the new high cost does not stand any comparison with the decrease of taxes on income of unsecured citizens by 1-2 thousand. About 220,000 people in Armenia live on a minimum wage, which, with a tax deduction, is only 55,000. And about 150 thousand people live on a relatively modest salary of 100-120.000, however, they have to provide this money not only for themselves but also for their families, as often only one person works in the family," the vice-speaker stressed.

Thus, according to Melkumyan, more than half of the working RA citizens are poor, and it is simply unacceptable to raise taxes in the current situation. And since the excises are constantly growing, it would be logical to reduce the overall scale of income tax rates, so that people have the opportunity to buy goods that are becoming more expensive all the time," Melkumyan stressed. "Those who receive a salary of up to 150,000 AMD a month, should not pay 23%, but 21%, and from 150 to 300 thousand - not 28%, but 26%.  In this case, their basket of goods and services would remain the same," the deputy noted.

As for whether "Tsarukyan" bloc to join the "Elk" bloc march against the rise in prices for essential goods, Melkumyan noted that this issue was not discussed in the faction. "We respect the point of view of our colleagues from the Elk faction, if they believe that they should hold rallies." he said, while expressing skepticism about the possibility of lowering prices as a result of the procession." According to him, this problem must be solved by other methods without specifying which ones.