Armenian Government Suggests To Replenish The Budget Via Raising Of

ARMENIAN GOVERNMENT SUGGESTS TO REPLENISH THE BUDGET VIA RAISING OF TAXES FOR TOBACCO PRODUCTION

ArmInfo
2010-02-18 16:18:00

ArmInfo. Armenian government has directed a package of draft laws to
the National Assembly according to which it suggests to raise taxes
for the tobacco production produced in Armenia and imported.

As a result of relevant changes, it is expected to raise annual
incomes of the state budget of the republic by 3 bln drams. Another
purpose of the government is humanitarian – fighting smocking.

At present tobacco production should pay the fixed 10% customs tax.

The government offers to fix zero custom duty and to transfer from the
fixed tax to the regime of VAT payment. Moreover, the government offers
to take excise tax from tobacco production (2850 drams), and importers
– 4000 drams. If the mentioned alterations are adopted by deputies
of the parliament, they will step in beginning from 1 January 2011.

Thus, according to experts, Armenian government is going the
traditional anti-crisis path, having shot two rabbits: it made a
correct step for replenishment of the state budget, and laid a tax
at cigarette smokers, as in that case cigarette prices will grow.

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