We are finding out that no matter how much we reduce the income tax for a person receiving AMD 100,000 as monthly salary, people’s incomes are increasing from that by just AMD 3,000-4,000; AMD 5,000 at the most.

The Prime Minister of Armenia, Nikol Pashinyan, noted about the abovementioned during his Facebook livestream on Thursday.

“We shouldn’t think about what magic trick we should do so that the AMD 80,000 salary will become a lot,” he said, in particular. “But we should see to it that salaries are increased [in Armenia].”

In his words, by setting a 23-percent flat income tax, the government encourages high salaries. “But today’s [income tax] system encourages low wages,” he added.

Also, Pashinyan said their objective is to see to it that more than half of Armenia’s wage earners get a high salary.

Earlier, Nikol Pashinyan announced that they propose to set a 23-percent flat income tax, but, at the same time, to reduce it by 0.5 percent every year, until it drops to 20 percent.