Yerevan/Mediamax/. Today, National Assembly of Armenia continued discussion of the package of legislative changes, providing for increase of the excise rate for tobacco, spirits and petrol.

Parliamentary correspondent of Mediamax reports that presenting the draft law, Deputy Minister of Finance of Armenia Suren Karayan stated that the suggested amendments will come into effect for tobacco products since January 1, 2014, and for petrol and spirits – from January, 2011.

Parliamentary faction of “Dashnaktsutiun” party strongly criticized these changes. Member of the faction Karen Vardanyan stated that the suggested changes on increasing the excise rate for tobacco products are fraught with reduction of workplaces in that sphere, reduction in tobacco production, as well as increase of the retail price for cigarettes.

Deputy Minister of Finance Suren Karayan noted that the suggested changes will lead to increase of the prime cost for one pack of domestic cigarettes for 10 AMD and imported ones – for 15 AMD. Head of “Dashnaktsutiun” faction Vahan Hovhannisyan noted that in parliament lobbies there are rumors that these amendments are a consequence of external pressure, according to which Suren Karayan stated that Armenia has its commitments to a few international agreements on free trade and trade relations with partner countries. He stressed that these changes are not a consequence of pressure, but a result of mutual agreement. Karayan expressed confidence that representatives of agriculture and tobacco industry will not suffer.

Debates as to this issue will be continued at the session of the parliament on October 6.

Let’s note that on October 3, the Ministry of Finance presented a package of draft laws, suggesting amendments into laws on “Excise tax”, on “Fixed payments for tobacco products”, etc. According to the suggested changes, from January 1, 2011, spirits, petrol and diesel fuel, and since 2014 – tobacco products will shift from the field of fixed taxation to the general tax system. They also plan to reduce the difference in rates of fixed payments between domestic and imported products and equal the rates of the excise tax for spirits of domestic and imported production.