YEREVAN. - The adoption of differential income tax rates, depending on the economic entity, should be reasonable, head of the parliament commission on economic issues Vardan Ayvazyan said and added he personally believes that the more one earns the higher taxes person should pay.

 “I fully agree to the idea of differentiation in relation to direct taxes. On the order of the Armenian President, stimulating the tax arrangements for new productions are currently being elaborated, and I think, the benefits of income tax can be a very effective mechanism for their development,” Ayvazyan stated.

Referring to the equation of fiscal regimes, Armenian Minister of Economy Tigran Davtyan noted in his speech that the tobacco industry will switch to a fixed VAT in 2014.

“The gradual transition in this case is due to a number of issues, which is reasoned by the tobacco industry in Armenia,” the Minister said.

“Regarding the tobacco industry, it is better to impose a separate tax on it. It will be directed to the state project for struggle against consequences of smoking. Such practice is applied in Europe,” ARF Dashnaktsutyun MP Artsvik Minasyan told Armenian News-NEWS.am.