YEREVAN. – There were budgetary losses as a result of the amendments to the Tax Code, and that is why the government increased excise tax.
Deputy Minister of Finance Davit Ananyan stated the aforesaid at Friday’s special session of the National Assembly of Armenia, during the debates on the bill which the opposition “Way Out” Faction has introduced, and with respect to making amendments and additions to the new Tax Code of the country.
Ananyan noted that they made several changes aimed at a sustainable economic growth, and which are business-friendly.
“[But] we had to increase either the VAT, or the excise tax burden,” he added, in particular. “The increase of excise tax is the lesser of [two] evils, and the government intentionally went on that path to enliven business climate.”
According to the grounds for the aforementioned bill, due to the new Tax Code that entered into force on January 1, the increase in the tax rates on energy resources has resulted in a rise in the prices of these sources and essential goods in Armenia.