Tuesday, December 4 2018 17:10

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.