ArmInfo.Soft drinks with a certain level of sugar content will become excisable in Armenia, Head of the State Revenue Committee (SRC) of Armenia David Ananyan stated in the parliament on November 2 answering the question of ArmInfo. According to him, this is an internationally accepted type of tax when goods with a high sugar content are excised.
This measure is planned as part of a government initiative to expand the list of excisable goods in order to compensate for losses of the state budget as a result of planned tax reforms, including a reduction in the income tax rate. As he pointed out, everyone knows that sugar in certain quantities is harmful to health. Taking into account this circumstance, this type of tax is an accepted international practice, when, due to harm from excessive consumption of sugar, they are classified as excisable. According to him, the SRC has already launched a similar initiative, but taking into account the latest political events, it was not properly discussed and taken into account according to the tax expectations of 2019. "If there were no political transformations in Armenia, then a consensus version of the draft law developed in the government would already be presented in the parliament and the public," he said.
As Ananyan explained, all those changes that, in fact, introduce more difficult conditions for business in the form of additional tax liabilities, from the point of view of law, cannot be implemented earlier than 6-7 months from the date of adoption of the regulatory act. Thus, if, at best, the law is passed before the end of the year, its implementation will be possible only from July 1, 2019.
As for the tax expectations of the government set in the draft budget for 2019, which imply an increase in fees of about 150 billion drams, then, according to the head of the SRC, the indicator is planned to be achieved through economic growth and tax administration. Today, as the chief tax officer of Armenia assured, he is ready to fulfill with honor the mission entrusted to him to ensure tax revenues of the state treasury.
To note, the nominal GDP of Armenia in 2019, according to the draft budget for next year, will grow by about 560 billion - from 6.193.0 billion AMD expected by the end of 2018 ($ 12,752.6 million) to 6.756.2 billion AMD ($ 13,717.5 million) set in the draft. GDP growth, according to the document, will be 4.9%, instead of 4.5% laid down in the approved state budget for t 2018.
The planned growth is expected to be ensured by a 05% growth in net indirect taxes (0.6% in 2018), 2.5% growth in the services sector (4% in the current year), construction will increase by 0.4% (0.6% in 2018) agrosector - 0.7% (0.6% in 2018), industry with an increase of 0.8% (0.9% in the current fiscal year). The following year's consolidated budget for revenues is estimated at 1.533.6 billion drams (without revenues from inter-budgetary transfers) instead of 1.333.5 billion drams in 2018, and for expenses - 1.685.2 billion drams (without receipts from inter-budgetary transfers), against 1.500.5 billion AMD this year, the deficit is about 151.6 billion drams or 2.2% of GDP, against 156.9 billion drams pledged for 2018 or 2.7% of GDP, but revised to 103.5 billion drams (1,7% / GDP). In 2019, capital spending from the current 2.4% of GDP will increase to 3.2% of GDP - to 220 billion drams. State treasury revenues will make 1,490.6 billion drams (1.354.8 billion drams this year) or 22.1% of GDP, of which tax revenues and state fees will be 1, 399.2 billion drams or 20.7% of GDP, instead of 1.255.8 billion drams or 20.3% of GDP in 2018, expenses were 1 trillion 642.2 billion drams against the current 1,458.3 billion drams.